SEEK expects solid international growth

SEEK Limited (ASX:SEK) told investors it expects the international companies it has invested in to grow alongside the internet markets in their various operating countries

Online job advertising company, SEEK Limited (ASX:SEK), believes the international companies it has invested in are well-positioned for growth as internet penetration improves in their various markets.

In a presentation to investors, the company said it has a policy of investing in foreign companies that are or could become market leaders, and can demonstrate a track record of growth.

The company said it had already made a strong return on its investments in Malaysia's JobStreet, and that its share of China's Zhaopin's profit had swung from a negative figure to 3.6 billion yuan ($505.9 million) in 1H11.

SEEK has a 42.9 per cent stake in Zhaopin and 22.4 per cent JobStreet, as well as holdings in Brasil Online and Mexico's OCC.

SEEK Asia has also executed a deal to buy 60 per cent of Jobs DB, which operates in Thailand, Indonesia, Southern China, the Philippines and Malaysia, as well as the mature internet markets of Hong Kong and Singapore.

SEEK Limited owns 69 per cent of SEEK Asia, along with Consolidated Media Holdings, Macquarie Capital and Tiger Global.

The purchase price for the 60 per cent stake will be $HK1.59 billion ($204.7 million), of which SEEK's investment is around $142 million.

Many of the markets the various companies serve are projected to see strong gains in internet penetration, Seek said. Brazil's internet penetration for example is currently only 36 per cent and Mexico's is just 27 per cent, leaving ample room for growth.

SEK shares grew 0.14 per cent in Tuesday's trading to $6.940.

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