SEEK Limited (ASX: SEK) held its Annual General Meeting (AGM) on 27 November 2018. The company’s Chairman Mr. Neil Chatfield addressed the shareholders at the AGM, following which the company’s CEO Mr. Andrew Bassat presented the key information and updates. Following the AGM, the share price of the company increased by 1.64 percent as on 27 November 2018 (AEST 1:20 PM).
While addressing the shareholder at the AGM, the chairman informed about another successful year of the company in which the company made strong progress against both its strategic and financial objectives. The Chairman further informed about the Strategic highlights of the company which include the formation of a new organizational structure for better growth in future, the building of world-class product and technology, strengthening of market share in key markets and executing on key transactions. Talking about the financial strength of the company, he informed about the strong underlying financial results which the company achieved in 2018.
In FY 2018, on a constant currency basis, the company’s revenue increased by 25 percent to $1,294.5 million as compared to a previous corresponding year. The company achieved strong revenue in ANZ and SEEK Asia, however, the results in LatAm were disappointing. The EBITDA of the company increased by 16 percent (constant currency basis) to $432.8 million in FY 2018. The reported NPAT of the company decreased by 84 percent to $53.2 million. The NPAT growth was lower than the EBITDA growth mainly because of higher D&A, Net Interest Expense, Share-based Payments and a lower share of Associate profit. While discussing the SEEK ANZ & SEEK Asia performance in FY 2018, the CEO of the company informed that SEEK ANZ & SEEK Asia delivered a combined growth of circa 14 percent. The total Asia Pacific and America EBITDA growth was 9 percent in FY 2018.
One of the key highlights of the company in FY 2018 was the completion of privatization and delisting of Zhaopin from the New York Stock Exchange. In FY 2018, the company increased its ownership in SEEK Asia from 86.25 percent to 100 percent by purchasing the remaining shares from News Corporation. In FY 2018, the company paid a dividend of 46 cents per share which is around 5 percent higher than the previous corresponding year.
As per the FY 2019 guidance, the company is expecting the revenue growth to be in the range of 16 to 20 percent on FY 2018. Further, the EBITDA growth of the company is expected to be in the range of 5 to 8 percent. In FY 2019, the company is expecting to make an investment of around $35mn to $40mn in early stage Ventures. The Company is expecting the reported NPAT of FY 2019 to remain broadly similar to FY 2018.
In the last six months, the share price of the company decreased by 10.45 percent as on 26 November 2018, and traded at a PE level of 120.130x. SEK’s shares traded at $18.56 with a market capitalization of circa $6.41 billion as on 27 November 2018 (AEST 1:20 PM).
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