Leading Workforce solutions company, SEEK Limited (ASX: SEK) has announced its half year results for FY 2019. For the half-year period, the company has reported Revenue growth of 21% and EBITDA growth of 6% as compared to the previous corresponding period (pcp). Following the release of the results, the share price of the company increased by 7.2% as on 27 February 2019 (AEST 1:15 PM).
SEEK ANZ delivered strong results in the half-year period, with 11% revenue growth primarily driven by depth products. SEEK Asia delivered strong operational and financial results with revenue growth of 11% and EBITDA growth of 10%.
While commenting on SEEK’s H1 2019 results, the company’s CEO and Co-Founder Andrew Bassat told that the management of the company is pleased with its overall strategic progress in the first half of FY19. During the half year period, the company’s key focus has been to reinvest in its largest and highest performing businesses being SEEK ANZ, SEEK Asia and Zhaopin. The company’s reinvestment bias over many years has resulted in these businesses performing at a high level. The strong results from these highest performing businesses have encouraged the company to continue reinvesting to pursue new revenue pools in the large human capital market.
The company’s AP&A businesses are gaining from increased scale, collaboration and the sharing of ANZ’s key learnings across a population of around 900 million people. SEEK ANZ has been performing well despite easing macro conditions.
SEEK Asia is continuing to show strong operating and financial momentum. Across Latin America, the company is seeing an overall improvement in marketplace metrics. AP&A’s integration efforts are expected to increase the quality and speed of new products and services which in turn supports long-term revenue growth.
The company’s board has declared an interim dividend of 24 cents per share which will be paid on 12 April 2019 with a record date of 26 March 2019.
Today, the company has also provided its updated FY19 guidance. In FY 2019, the company is expecting the Revenue growth to be in the range of 16% to 20% as compared to FY2018. Further, the company is expecting EBITDA growth to be in the range of 5% to 8%. In FY19, the company is expecting to make Investments of around A$40m to A$45m in Early Stage Ventures. FY19 Reported NPAT is expected to be slightly below FY18 Reported NPAT due to the increased level of investment in Early Stage Ventures. Given the strong performance in the early stage ventures portfolio, the company is looking to reinvest more to accelerate their growth strategies. The company also expects the aggregate of ANZ, Asia and Zhaopin to deliver FY19 Revenue, EBITDA and NPAT growth rates in excess of the overall SEEK Group growth rates.
Today,the company has also announced the appointment of Leigh Jasper as a non-executive Director, effective from 1 April 2019.
Meanwhile, in the past six months, the share price of the company has decreased by 21.04% as on 26 February 2019, although the stock has offered positive YTS return of 5.47%. SEK’ shares traded at $18.590 with a market capitalization of circa $6.09 billion as on 27 February 2019 (AEST 1:15 PM).
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