Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

SEEK Limited (SEK) Grows Dividend By 5% In FY18 Result

SEEK Limited (ASX:SEK), the owner of seek.com.au, released its 2018 financial results to the market today revealing an 11.5% increase in revenue.

SEEK Limited (ASX: SEK) released its 2018 financial results to the market today revealing an 11.5% increase in revenue.

SEEK is one of the largest job portal businesses in the world, it owns seek.com.au. It is the leader in Australia but it also has many other leading websites in Asia and South America, in countries like Brazil and China.

Here are some of the highlights from its report:

  • Reported revenue up 24% to $1.295 billion
  • Reported profit for owners down 84% to $53.2 million
  • EBITDA was up 16% to $432.8 million (click here to learn what EBITDA means)
  • Underlying net profit (excluding significant items) up 3.9% to $230 million
  • Total dividends per share up 5% to 46 cents

According to Bloomberg, analysts were expecting SEEK to report a profit of $206 million. A dividend of $0.45 was also expected. The reported profit appears to be under expectations.

SEEK CEO and co-founder Andrew Bassat said: “SEEK is performing strongly across five out of six of our major headings. Our three biggest businesses, SEEK ANZ, SEEK Asia and Zhaopin are all travelling well.”

Zhaopin is seen as a key part of SEEK’s future. It’s a leading job portal business in China. SEEK management believe China will become the largest human capital market in the world. Between FY12 and FY18 Zhaopin grew revenue at a compound annual growth rate of 19%, which is a lot.

Zhaopin has successfully evolved its business model which contributed to strong growth in operating metrics and revenue,” Mr Bassat commented. “The focus is to continue investing aggressively and capitalise on the enormous market opportunity in China.”

Between SEEK in Asia Pacific & Americas, and SEEK Investments, the company estimates it has candidate relationships with nearly 200 million people and hirer relationships with almost 1 million organisations.

Outlook

In FY19 SEEK said it will invest further into its businesses that it thinks it can generate a good return over the long run.

Next year SEEK is guiding for revenue growth of 16% to 20%, EBITDA growth of 5% to 8%, and it will invest around $35 million to $40 million in early-stage ventures.

With all of that in mind, FY19 reported net profit is forecast to be broadly similar to FY18.

Mr Bassat finished by saying: “Our FY19 outlook for aggressive investment reflects our high conviction view that SEEK is well placed to capture large growth opportunities.”

Introducing The Australian Investors Podcast

Join The Rask Group’s founder, Owen Raszkiewicz, as he profiles Australia’s best investors, founders, authors and financial thinkers. Download it free on iTunesCastboxSoundCloud or wherever you choose to listen.

itunessoundcloudcastboxdownload

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content