According to the Australian Financial Review, Andrew Bassat, SEEK’s chief executive, plans to increase the company’s investments in early-stage ventures and may acquire more start-ups as the online employment and education business positions for the next wave of HR transformation.
SEEK cracked the $1 billion revenue milestone for the first time in the 2016-17 financial year, an event Bassat says that he did not imagine the $6.1 billion firm would reach in its early days.
The company reported revenue growth of 9.1 per cent for the year to June 30, going from $965.4 million to $1.05 billion. At the same time its statutory net profit was $362 million, compared to $399.4 million in the previous corresponding period. But, when significant items and its early stage ventures were excluded, SEEK’s profit was $220.8 million, compared to $198.1 million in FY16.
This figure narrowly exceeded SEEK’s guidance of $220 million, but failed to impress investors who pushed the company’s shares down more than 5 per cent to $16.9 in early trade, largely on the back of the company’s forward looking estimates that saw costs rising faster than revenue.
The high tech company has invested in several early-stage companies such as Melbourne employment marketplace Sidekicker, job application tracking and client relationship start-up JobAdder, worldwide job search aggregator Jora, Brazil’s Catho Education and Malaysia’s JobStreet Education.