Seek shares suffer slump

SEEK shares have slumped after the online job site flagged a substantial slowdown in earnings and revenue growth in 2018/19.

The group will also book a $178 million impairment charge against its operations in Brazil and Mexico for 2017/18, saying deteriorating political and economic conditions in those locations are impacting performance.

Seek has forecast earnings, before interest, tax, depreciation and amortisation growth of 5 to 8 per cent for the year ending June 30, 2019, compared with expected earnings growth of about 15 per cent for 2017/18, at the top end of its guidance range.

Revenue is expected to be up between 16 to 20 per cent for 2018/19, compared with revenue growth of about 24 per cent for 2017/18. The company said the gap between revenue and earnings growth was a result of the high level of investment – an 80 per cent lift in operating expenditure – that will go into its businesses in China, Australia-New Zealand and Asia. Seek says its reported profit after tax for 2018-19 is expected to remain “broadly similar” to the $230 million tipped for 2017-18.