SEEK.com

Facebook's IPO this week reminded investors that Internet companies are still treated with skepticism by the market - even post dot.com crash which began in the late 1990's and imploded in the early 2000's.

The dot.com crash may have been the shake-out phase of the Internet sector in which only viable Internet companies with genuine businesses survived.

SEEK (ASX: SEK) this week increased its investment in 2 international employment websites - Brasil Online (increased to 51%) and Online Career Center (OCC) Mexico (increased to 57%). Both Brasil Online and OCC will be consolidated into the SEK group financial statements and both are expected to be earnings per share (EPS) accretive in the year to 30 June 2013 (FY13).

On completion of the acquisitions, SEK will hold controlling interests in both businesses, and the move further shows SEK's intentions to expand its global footprint, particularly in the highly attractive and fast growing Latin American online employment sector.

With the employment market undergoing a structural migration from print media to online media, SEK will continue to see more and more business come its way and with number 1 positions in Australia, New Zealand, Brazil, South East Asia and Mexico it looks well placed for further growth.

Further growth will come from making new acquisitions, increasing Internet penetration in developing countries, and through increasing its stakes in its existing international investments which currently stand at between 22% (JobStreet SE Asia) and 80% (JobsDB SE Asia).

SEK reported its usual strong start to the year ending 30 June 2012 with net profit increasing 27% to $61 million in the first half ending 31 December 2011 (1H) and its shares soared on the news and on the positive outlook given.

The 1H profit increase was driven by growth in domestic employment, strong growth from Zhaopin and an improved performance from Education, and this overall result was achieved during a subdued labour market.

Internet shares such as SEEK tend to trade on high valuations, which reflects the high growth potential of companies who conduct their business over the Internet, so any weakness in the share price is welcome.

About SEEK.com
SEEK.com is Australia and New Zealand's number 1 employment website and the company also has operations in South East Asia, China, Brazil and Mexico. Other services include SEEK Commercial (businesses and franchises for sale) and SEEK Learning (job learning and education). Listed on the ASX in 2005, SEK has entered international markets through the acquisition of stakes in local employment websites, including its prized 56% stake in China's Zhaopin website, which holds the number 2 position in China.

Status: GROWTH BUY

SEK's shares today traded at $6.70

For portfolio, sharemarket and fixed income enquires contact:
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Authorised Financial Adviser (AFA)
0800 437 8489, 09 304 0232, dan.stratful@irg.co.nz
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