Dip in earnings hits Seek shares
SHARES in Seek have slumped after the online job site flagged a substantial slowdown in earnings and revenue growth.
The group will also book a $ 178 million impairment charge against its operations in Brazil and Mexico for the year to June blaming the hit on deteriorating political and economic conditions there.
Chief executive Andrew Bassat yesterday said the cut to the book value of the Bra- zil and Mexico operations was “unfortunate”.
“Performance has been disappointing but we remain committed to these markets,” he said.
“A turnaround of Brasil Online and Mexico will require more time and better economic conditions.
“The likely short- term outcome is that financial performance will be worse before an expected sustained improvement.”
Seek has forecast earnings, before interest, tax, de- preciation and amortisation to grow between 5 per cent to 8 per cent this financial year.
That will be a slowdown from the 15 per cent earnings growth – the top end of its guidance range – the company is expected to announce for the 2018 financial year when it hands down its full- year results next week.
Despite the slump, Seek said its net profit for this financial year was expected to remain “broadly similar” to the $ 230 million it has forecast for the 2018 financial year.