The continuing migration of job advertisements to the web and growth of its Chinese and education businesses helped online jobs website SEEK to a record first half profit.
However, chief executive Andrew Bassat cautioned that the record-based results, generated in the face of difficult economic conditions, could come unstuck if there was any further deterioration in the world outlook.
Seek shares rallied almost 11 per cent, or 61 cents to close at $6.31 after a record first half profit of $60.6 million, up 27 per cent on the previous six months to December 31.
SEEK said on Wednesday it had 14.7 million hits to its Australian online employment classifieds in January alone.
The company’s net profit for the six months to December 31 was up 27 per cent, from $47.9 million in the previous corresponding period.
“The fact that we’ve had not great conditions, continued strong investment and record broad-based results is very pleasing,” Mr Bassat told AAP.
He said Australia’s employment sector seemed to be doing well but things could get worse if Europe’s debt crisis deteriorated.
“There’s no doubt that if Europe has a diabolical outcome that would have an impact on China and that would have an impact on Australia,” he said.
But with Greece’s debt problems reaching a level of stability, a catastrophic event was looking more unlikely, Mr Bassat said.
SEEK’s three main businesses are its Australian and New Zealand jobs listings website, an education unit that offers teaching courses and student recruitment, and an international arm that holds SEEK’s interests in offshore ventures.
Revenue growth in SEEK’s education business was up 15 per cent up on the previous corresponding period, at $59.9 million.
Zhaopin, a Chinese employment website in which the company holds a 56.1 per cent interest, posted revenue growth of 39 per cent, SEEK said.
The company said it expected its second half revenue and earnings to be similar or slightly ahead of first half, and strongly ahead of the same period in the previous year.
SEEK declared a fully franked interim dividend of 8.3 cents per share.
Peter Esho chief market analyst at City Index said the half year results were very strong.
“The underlying bread and butter – the domestic SEEK division – continues to grow at healthy levels with operating earnings up 20 per cent,” he said.
