Melbourne, Australia, Nov 26, 2019 - (ABN Newswire) - SEEK Limited (ASX:SEK.AX - News) (HAM:SLD.HM - News) (OTCMKTS:SKLTY - News) is confident of delivering strong returns over the medium to long term but this requires continued investment.
- Investment levels have stepped up in recent years
o Investing in high returning product, tech and data strategies
o Allocating significant capital towards our high performing businesses
- As anticipated, seeing early revenue benefit from step up in investment but realising the full benefit will take some time
o SEEK ANZ focusing on laying foundations to better align price to value & expand our product set
o Early progress in SEEK Asia integration but requires ongoing investment for 2-3 years
o Zhaopin is investing to build market leadership in a competitive environment
o Deploying capital into new ESVs where we are confident in generating strong returns over 5+ years
- As a result, SEEK is under-earning in FY20 given step up in investment & weaker macro conditions
o Lag period before investment translates to strong revenue growth
o FY20 revenue growth rate would be higher in better economic conditions
o Over the medium to long term expect increase in profitability
- Confident that recent investment will improve SEEK's defensibility, profitability and valuation
o If we execute well, our pursuit of the A$5b aspirational revenue opportunity by FY25 is expected to lead to improved profitability and overall growth in shareholder value
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About SEEK Limited:
SEEK Limited (ASX:SEK.AX - News) (OTCMKTS:SKLTY - News) is a diverse group of companies, comprised of a strong portfolio of online employment, educational, commercial and volunteer businesses. SEEK operates across 18 countries with exposure to over 2.9 billion people and approximately 26 per cent of GDP. SEEK makes a positive contribution to people's lives on a global scale. SEEK is listed on the Australian Securities Exchange, where it is a top 100 company with a market capitalisation close to A$6billion and has been listed in the Top 20 Most Innovative Companies Globally by Forbes, and Number One in Australia.
Senior Public Relations Specialist
SEEK Australia / New Zealand
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