What: At the company's AGM, SEEK Limited (ASX: SEK) told shareholders that it sees strong revenue growth in FY 2015 for its SEEK Domestic business and reaffirmed the previous guidance it gave in August.
Both its SEEK Education and SEEK International divisions are continuing to perform well based on year-to-date results. Also, the company announced the acquisition of the Malaysia-based JobStreet job search website company is now complete.
So What: In FY 2014, group revenue was up 22% and underlying net profit gained 27%. The business group outlook for FY 2015 is for solid growth, but the company does expect NPAT growth to be moderately lower than revenue and EBITDA growth. It will provide an update on its outlook and market conditions in February,
In the AGM presentation, the company stated its SEEK International division was experiencing good growth overall. NYSE-listed Zhaopin (NYSE: ZPIN), the Chinese job search website which SEEK has a controlling shareholding in, showed revenue and EBITDA growth over 30% in 1Q FY 2015. It is still the market leader of job search sites in China with growing market share. The outlook is for continued growth.
Likewise, its South East Asian subsidiaries JobStreet and JobsDB, as well as the top Brazilian and Mexican job search websites (Brasil Online and OCCMundial) which SEEK holds a controlling interest in, are all showing solid revenue and earnings growth.
Seek Education, the company's education and training division, is also projected to have solid underlying growth in FY 2015.
Now what: With an overall expectation of continued growth, SEEK still looks like an attractive investing opportunity. Consensus forecasts from analysts are looking to earnings to rise about 22% on the average annually over the next two years. Together with a 1.8% fully franked yield, it makes the 32 PE ratio the stock trades at seem a fair to reasonable price.
There are no big changes or disappointments in the company's outlook, so investors should be able to look forward to similar growth that the company has recently achieved. I think it could be a pleasing growth stock for your long-term portfolio.
