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View All NewsAustralia – Seek full year revenue rises 5% in constant currency
Revenue rose 5% in constant currency at Australia-based job board operator Seek in its fiscal year ended 30 June 2021. Revenue growth for continuing operations in constant currency was 21%.
Seek operates online job boards in Australia, New Zealand, Asia, Mexico and Brazil and has investments in online learning and talent platforms
| (AUD millions) | FY 2020 | FY 2020 | % change | % change constant currency | FY 2020 (US$ millions) |
| Revenue | 1,591.1 | 1,577.4 | 1% | 5% | 1,148.7 |
| EBITDA | 473.6 | 410.6 | 15% | 18% | 341.9 |
| Net Profit After Tax | 752.2 | -113.1 | - | - | 543.1 |
Revenue growth led by a strong recovery from ANZ, with Seek Asia also recovering but at a slower rate. The growth was partly offset by Discontinued Operations, down 10% compared to FY2020, driven by lower Zhaopin revenue due to deconsolidation.
Earlier this year Seek announced it will reduce its holding in Zhaopin from 61.1% to 23.5%.
Discontinued results comprised the results of Zhaopin for the ten months to 30 April 2021, including the gain on disposal, and for the 12 months in FY2020; and assets which will transfer to the fund, including OES (online education services) and a suite of ESVs (early stage ventures).
During the year Andrew Bassat stepped down as managing director and CEO of Seek and was succeeded by Ian Narev. Bassat transitioned to the new full-time role of Executive Chairman and CEO of Seek Investments. Geoff Roberts also retired from the role of group CFO with effect from 30 June 2021.
Seek CEO and Managing Director Ian Narev said, “Market conditions in FY21 were unprecedented for Seek. The year started in the depths of the first wave of Covid-19, which then gave way to a strong recovery in Australia, New Zealand, and many Asian markets.”
“Whilst we made small adjustments as a result of the volatility, our focus remained firmly on the long-term. Our decision early on in the pandemic to continue to invest in our people and capability at a time of high economic uncertainty paid off earlier than we expected. Not only did we maintain momentum on our core strategic priorities, but we in fact set ourselves bolder goals, particularly in relation to the upgrading of our product and technology infrastructure,” Narev said.
Revenue by region and segment
| (AUD millions) | FY 2021 | FY 2020 | % change | % change constant currency | FY 2021 (US$ millions) |
| Continuing Operations | 760.3 | 650.6 | 17% | 21% | 548.9 |
| Australia, New Zealand (ANZ) | 541.0 | 387.2 | 40% | 40% | 390.6 |
| Seek Asia | 145.6 | 162.9 | -11% | -2% | 105.1 |
| Brasil Online | 30.5 | 52.4 | -42% | -21% | 22.0 |
| AP&A and Other | 1.2 | 2.0 | -40% | -40% | 0.8 |
| Early Stage Ventures (investments retained by Seek) | 22.8 | 21.0 | 9% | 10% | 16.4 |
| Discontinued Operations | 830.8 | 926.8 | -10% | -7% | 600.0 |
| Zhaopin | 577.1 | 749.6 | -23% | -19% | 416.8 |
| Online Education Services (OES) | 190.7 | 136.6 | 40% | 40% | 137.7 |
| Early Stage Ventures (ESV) (discontinued) | 63.0 | 40.6 | 55% | 55% | 45.5 |
The recovery in ANZ accelerated in early H2 FY2021, with ad volumes exceeding pre Covid-19 levels in March 2021. Hiring activity from Small to Medium Enterprises (SMEs) was strong, with improving trends also observed across corporates and recruiters during H2 FY2021.
In Seek Asia, revenue recovery varied by market, with stronger trends in Singapore, Hong Kong and Malaysia, while other markets were weaker reflecting a slower recovery from the impacts of Covid-19.
Financial results in Brasil Online and OCC (Online Career Centre) remained weak with Covid-19 severely impacting the Brazilian and Mexican economies.
AP&A Other region and ESVs comprise early stage investments that complement and/or have synergies with the AP&A operating businesses, including: Jora, which is playing a key role in growing ad scale and supporting new product development, and now has a presence in 36 countries; and recruitment software JobAdder.
Zhaopin reported results declined due to the deconsolidation which occurred on 30 April 2021 (FY2021 includes ten months of consolidated results compared with a full 12 months in FY2020). The business was significantly impacted by the outbreak of Covid-19 in early 2020, and has experienced a slow but steady recovery on an underlying basis.
OES benefitted from a significant uplift in Covid-19-related demand for online education; and ESVs saw strong revenue growth and operating results from Sidekicker as this business continues to scale.
Looking ahead the group said forecasting remains challenging given volatility caused by Covid-19, changes in hiring sentiment and currency effects.
EBITDA is forecasted to be in the range of AUD 425 million to AUD 450 million (USD 583.1 million to 617.4 million). This is based on assumed revenue in the range of AUD 950 million to AUD 1 billion (USD 306.9 to 722.3 million). Net Profit After Tax is forecasted to be in the range of AUD 190 million to AUD 200 million (USD 137.2 million to 144.4 million).
Narev concluded, “While we have observed an improvement in operating conditions from the Covid-19 lows of early 2020, we continue to experience volatility in hiring demand as our key markets react to localised outbreaks of Covid-19. Despite these challenges we will continue to focus on our key strategic priorities to grow our core businesses over the long term and invest in our capabilities. We have set ourselves an ambitious execution agenda. As economies recover, we expect to unlock significant revenue opportunities across our core markets and realise increased operating leverage over time.”
According to SIA’s Online Job Advertising report published earlier this month, Seek has retained its position as the world’s third largest online job advertising firm with a global market share of 5%.
Shares in Seek closed at AUD 31.30 (USD 22.61), down 0.67% on the day and 8.35% below its 52-week high of AUD 34.15 (USD 24.67), set on 1 July 2021. The company has a market cap of AUD 11.14 billion (USD 8.04 billion).