Seek Limited’s [ASX:SEK] share price has fallen more than 8% shortly after the release of its preliminary results for the 2018 financial year.
The employment platform’s shares are currently trading at $20.15, down $1.77 from last week’s closing price of $21.92.
Why did Seek’s share price drop?
In a market update this morning, Seek announced three significant items costing the company $140 million. Including a $119 million impairment for Brasil Online and a $59 million write down for OCC in Mexico.
The tough trading conditions were due to deterioration in economic and political conditions in Brasil, competitive pressures and need for further capital invested in Mexico.
Andrew Bassat, CEO and Co-Founder of Seek said that despite the disappointing performance of Brasil Online and OCC, Seek remains committed to these markets.
‘We are hopeful a greater strategic focus, resourcing under the AP&A structure and an improving economy can over time assist in turning around performance.’
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Seek’s full year results for the 2018 financial year
Despite the above writeoff, the company is expecting 2018 financial year results to be at the top end of the prior guidance — $30 million in comparison to $25–30 million.
‘Despite our issues in Latin America, the SEEK Group delivered a strong underlying FY18 result. We are pleased to deliver Revenue, EBITDA and underlying NPAT results at the top end of our guidance range. We are particularly pleased with the results from SEEK ANZ, Zhaopin and SEEK Asia’ said Mr Bassat.
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