Most of Seek’s earnings now derived offshore

Most of Seek’s earnings now derived offshore

With Seek’s (ASX: SEK) share price up over 10% since the release of its six months result (ending 31 December 2015) late February, it’s no secret how the market felt about the job search site’s 9% growth in underlying profit to $102.4 million.

Given the recent subdued economic conditions, revelations that Seek has consolidated its market leadership position with 7.1 million user profiles on its platform – up 41% from the prior comparable period – comes as welcomed relief for long-suffering shareholders who’ve watched the stock shed its ‘market darling’ status and bounce progressively lower since late December last year.

Excluding the profit on the sale of its stake in IDP Education, underlying net profit was flat at $93 million.

But this shouldn’t overlook the fact that much of Seek’s growth can be attributed to its ever expanding international division – now spanning14 countries, including China, Brazil, Mexico, Africa, India and Bangladesh – which delivered a record 36% uplift in earnings before interest, tax, depreciation and amortisation (EBITDA) to more than $100.6 million.

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