Seek FY16 sets profit record

22 Aug 2016

Seek Limited has reported a record profit increase of 27 percent and a healthy overall revenue increase of 11 percent in its FY16 results, with international acquisitions and foreign revenue growth playing a key role in boosting financial performance.

This was despite weak economic conditions in China and Latin America and in Seek’s domestic markets in Australia and New Zealand.

Revenue was reported at AUD$950.4 million ($723 million U.S.) for the year while reported net profit after tax was AUD$357.1 million, a result that exceeded company predictions.

Seek’s international businesses, which include recently acquired key Chinese recruitment site Zhaopin, Brazilian site Brasil Online, Mexican site OCC Mundial and Seek Asia, reported revenue growth of 18 percent and contributed more than 50 percent of Seek’s overall group revenue.

Andrew Bassat, Seek CEO, said Zhaopin in particular achieved strong revenue growth of 22 per cent “against a backdrop of soft macro conditions.”

Bassat said Seek’s commitment┬áto large global markets and to economies forecast to achieve high growth was evidenced by the company’s recent increase in equity ownership in companies such as Seek Asia. Seek Asia’s results were attributed to increases in core online job advertising revenue and to merger integration benefits.

“Very few businesses are as well positioned as Seek in being exposed to over 4 billion people and 30 percent of global GDP,” Bassat said.

Subdued macro economic conditions also affected Seek’s domestic markets of Australia and New Zealand. Despite this, the company achieved a five-year high in domestic revenue growth, Bassat said.

He attributed the growth to sustained investment in people, technology and new products. Product innovations include Seek’s Talent Solutions, which offers a premium search product, and Seek’s expanded Company Reviews product, which allows employees to review employers and major corporate hirers.

“In the next 12 months, we will focus on deepening our relationships with candidates and hirers in Australia and New Zealand, with the launch of several new candidate and hirer products and through scaling up of our existing products,” Bassat said.

In terms of outlook, Seek is predicting a reported net profit after tax for FY17 in the range of AUD$215 million to AUD$220 million.

 

 

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Kate Lyons

Kate Lyons has worked as a business, marketing and finance journalist for over 25 years. Formerly news editor and deputy editor of advertising weekly B&T, as well as editor of Australian Small Business magazine and Franchising Magazine, she has written for all major metropolitan newspapers in Australia, including The Australian Financial Review, The Australian, The Sunday Telegraph and The Sydney Morning Herald.