Seek finds what it sought as earlier investments finally pay off

SEEK Limited has lifted revenue and underlying profit as long-term investments in its Australian and New Zealand arm begin to show promise.

The online job-search company’s underlying net profit, which excludes one-off significant items, grew 11 per cent to $220.8 million in the 12 months to June 30, while total revenue from ordinary activities rose 9 per cent to $1.06 billion.

But the company’s statutory net profit fell 5 per cent to $340 million, due to a shortfall in capital gains from 2016 when Seek sold its IDP Education business.

Co-founder and chief executive Andrew Bassat says Seek’s Australia and New Zealand Employment business was growing rapidly, with revenue from the division up 48 per cent since 2014 thanks to long-term investments and despite subdued macro-economic conditions.

Australia-NZ sales revenue climbed 14 per cent to $355.9 million, from $313.1 million in the prior corresponding peri- od, while earnings jumped 11 per cent to $197.9 million, supported by yield, new products and enhancements.

“It really has come from a lot of the investment we have made over the past five years which is starting to come through in that we are providing a broader range of services,” Mr Bassat said.

Meanwhile, sales revenue for Seek’s international division, which accounts for almost two-thirds of its total revenue, grew 6 per cent to $629.3 million, despite weak economic conditions in Brazil and Southeast Asia dampening revenue in the first half.

But its earnings fell 3 per cent, dragged down, in part, by an 8 per cent fall in Brasil Online.

Mr Bassat said that while confidence remained low surrounding its Brazil business, its Asian division showed promise as revenue grew.

“China and Southeast Asia are massive markets so they should be able to grow much faster than the rest of the business and really become a very important part of our revenue profitability before too long.”