Seek shares are being hammered after profits fell

Seek CEO and co-founder Andrew Bassat.

Seek, Australia’s biggest online job ads provider, has posted full-year net profit after tax (NPAT) of $340.2 million.

The net figure represents a 5% decrease on last year, but that factored in higher proceeds from one-off sales in FY16.

Excluding the sale of significant items, Seek reported underlying growth in NPAT of 11% to $220 million, in line with the company’s half-year forecasts.

The result left the market unimpressed and a short time ago, Seek shares were down 5.27% to $16.89.

Seek reported headline revenue across the group of $1.041 billion, representing an increase of 14% from FY16 on a constant currency basis.

The company said that it currently has a 36% share of online job placements, more than nine times its nearest competitor.

“We are very pleased with ANZ’s results and the progress it is making in scaling up existing products and services. SEEK’s strategy is to undertake focused reinvestment which directly contributes to our ongoing market leadership and growing financial results,” chief executive Andrew Bassat said.

The company reported 22% growth in operating cash flow to $456.8 million.

Adjusted for foreign exchange, Seek reported revenue growth for its international operations of 13%.

Bassat was optimistic about the company’s Asian strategy.

“We saw momentum in the second half of FY17 with improving results in mature markets. SEEK Asia is a clear market leader in placements and its key marketplace metrics such as profiles and number of hirers are growing well. SEEK Asia is investing to evolve and we expect financial results to improve over the short to medium term,” he said.

The company said it will increased its half year dividend by 11% to 21 cents per share, payable on 13 October, 2017.

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