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Seek lifts profit as Aust revenue surges

AAP logoAAP 21/08/2016

Online jobs portal Seek has lifted full-year profit 27 per cent to $357.1 million after domestic revenue grew at its strongest pace in five years.

Revenue from Seek's Australia and New Zealand unit rose 14.6 per cent to $313.1 million after what the company said was strong take-up by job advertisers of its basic and premium talent search products.

Seek attributed the improvement to yield increases, new products and product and service enhancements.

"Revenue growth was at its highest level in five years despite subdued macro conditions, which reflects the benefits of prior period re-investment in people, technology and products," chief executive Andrew Bassat said.

"In the next 12 months, we are focused on deepening the relationships we have with candidates and hirers in Australia and New Zealand."

Underlying profit excluding significant items rose 2.6 per cent to $198.1 million, beating the company's own guidance of $195 million reaffirmed alongside its half-year results.

Mr Bassat expects that to rise again in 2016/17 to between $215 million and $220 million.

Total revenue for ordinary activities for the 12 months to June 30 rose 10.7 per cent to $965.4 million and net profit was up from $281.2 million for the prior corresponding period.

Revenue from Seek's international operations, which cover 14 countries, rose 18 per cent to $592.3 million after it acquired the 49 per cent of Brasil Online - Brazil's leading online job site - it didn't already own, and increased its stake in Seek Asia from 80.8 per cent to 86.2 per cent.

"SEEK operates market leaders in economies which are forecast for high growth," Mr Bassatt said.

"The recent increase in equity ownership in Brasil Online and Seek Asia is demonstration of our strong confidence in these businesses."

SEEK'S SUCCESS

* Net profit up 27.0pct to $357.1m

* Revenue up 10.7pct to $965.4m

* Final dividend up 2.0 cents to 19.0 cents, fully franked

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