Online employment classifieds website owner SEEK Limited’s (ASX: SEK) shares have rallied 16% this morning after the company released an impressive set of half-yearly results which were well received by the market.
The key highlights from the record interim results include:
- Revenue of $380.7 million, up 38%
- Net profit after tax (excluding significant items) of $87.4 million, up 29%
- Earnings per share (EPS) (excluding significant items) of 25.8 cents per share (cps), up 29%
- Interim dividend of 14 cps, up 40%
- Significant growth in SEEK International – divisional EBITDA was up 79% on a ‘look-through’ basis
- Acquisition of 75% of JobStreet – an online employment market place operating in Malaysia, Singapore, Indonesia, Philippines and Vietnam
Just before midday Seek’s shares had climbed 16% to $15.46. Based on analyst consensus forecasts of EPS for financial year 2014 of 47.5 cents per share, the stock is trading on a price-to-earnings ratio of 32.5. It’s a hefty multiple but when the company is producing such outstanding growth rates as just reported for the December half coupled with a strong international growth outlook, the multiple could well be justified and the stock could certainly head higher.