Jobs search website group SEEK (SEK) said yesterday that while it had been enjoying better-than-expected trading conditions so far this financial year, the improvement wasn’t enough to cause it to lift earnings guidance for 2014-15.
So CEO Andrew Bassat said the company was only reaffirimg, not lifting, the previous guidance for solid earnings growth.
Figures from the monthly survey of monthly job ads from the ANZ show internet job ads are up more than 7% in the past year, and have been growing solidly since mid year.
SEEK said it is expecting strong revenue growth in 2014-15 – previously only solid – offset by an increase in operating expenses due to re-investment in growth opportunities.
SEK YTD – Seek improving but not upgrading
Mr Bassat said the company was experiencing positive trading conditions with revenue since July 1 ahead of internal expectations, supported by solid forward-looking indicators.
"SEEK is focused on achieving its purpose of helping people live more fulfilling and productive working lives and helping organisations succeed," he said.
"We are making strong inroads into our placement strategy which will be highly applicable across all our international businesses.
"To support the strategy, SEEK is continuing to invest aggressively to capture the exciting opportunities it presents."
The company’s full year net profit in 2013-14 fell, but that was a reflection of one-off gains from sales in the previous year. Underlying after tax earnings were up 27% to $179 million
Seek shares rose 2% to $18.00.
