Shares up despite hefty hit to Seek’s net profit

ONLINE job search company Seek has posted an 84 per cent slump in full-year net profit, hurt by impairments at its Brazilian and Mexico operations.

Net profit fell to $53.2 million for the year ended June 30, due to significant items totalling $147 million, compared to $340.2 million a year earlier.

However, the group’s underlying results came in at the top end of its recently upgraded guidance, which helped drive the share price 69.5 cents, or 3.4 per cent higher, to $21.34.

Excluding significant items and early stage ventures, underlying profit after tax rose 3.9 per cent to $229.5 million.

Revenue jumped 25 per cent to $1.29 billion.

For 2018/19, Seek has forecast underlying earnings growth of five to eight per cent, excluding significant items, but flat net profit.

Annual revenue is expected to be 16 to 20 per cent higher and investments in early stage ventures are expected to range between $35 million and $40 million. Seek also announced the promotion of board member Graham Goldsmith as its new chairman.

Mr Graham will take over from outgoing chairman Neil Chatfield – who flagged his retirement at last year’s annual shareholder meeting – on December 31. The company has also appointed Michael Wachtel – currently a board member of Australia’s sovereign wealth fund, Future Fund – as a nonexecutive director, effective from September 1.