Leading workforce solutions company, SEEK Limited (ASX: SEK) has made new investments in two high growth global online education businesses- FutureLearn and Coursera, continuing its strategy of deploying capital into market leading high growth assets across the large human capital market. FutureLearn is a world leading online education platform with more than 20m enrolments and 9m learners whereas, Coursera is the world’s largest online learning platform for higher education with 40m learners. The decision to make investments in these two global online education businesses is highly aligned with SEEK’s strategy and existing online education investments (OES, Caelum and Utel). From these transactions, the company is expecting to recognize a NPAT loss of around A$2 million in FY19.
Despite the release of this news, the share price of the company declined by 2.041% during the intraday trade.
Both FutureLearn and Coursera are global leaders in online education business who are having a proven track record of educating millions and both of them are leveraged to structural trends such as migration of education online.
While commenting on these transactions, SEEK’s CEO and Co-Founder, Mr. Andrew Bassat told that these new transactions are sharing similar logic to the company’s successful IDP and Online Education Services (OES) investments.
The company’s investment in FutureLearn will provide the company with a strong footprint across the UK, Europe and Australia and its investment in Coursera will provide the company with exposure to the high growth North American education market.
In its annual report for 2018, the company had informed that relative to how most corporates are run in Australia, SEEK has quite a different approach when it comes to its investment philosophy. The company’s approach is more long-term focussed, similar to what is expected from a large US or Chinese technology business. In the past 20 years, the company has consistently invested and evolved, providing four concurrent phases of growth. Each of these phases offers large and exciting opportunities and the company believes that it is uniquely positioned to capitalise on each of them.
If the company invests and executes well that this will translate into strong returns for shareholders over the medium to long-term.
In February 2019, the company released its half year results in which it reported revenue growth of 21% as compared to pcp.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock traded at a price of $18.240, down by 2.041% during the day’s trade with a market capitalisation of ~$6.54 billion as on 29 April 2019. The counter opened the day at $18.670 and reached the day’s high of $18.800 and touched a day’s low of $18.210 with a daily volume of ~430,385. The stock has provided a year till date return of 13.26 & also posted returns of 3.16%, 7.75% & 4.72% over the past six months, three & one-month period respectively. It had a 52-week high price of $22.940 and touched 52 weeks low of $16.270, with an average volume of ~1,333,365.
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