Seek’s Share Price Drops After the Release of FY18 Results

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.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: You’ll find over 2,000 stocks listed on the ASX and on any given day a bunch will rise or fall, just like Seek. It’s near impossible to monitor these on your own. Our analyst Sam Volkering has picked out four Aussie stocks he believes could be top performers in 2018. Check out his free report ‘The Four Best ASX Stocks for 2018’.


Ryan Clarkson-Ledward is one of Money Morning’s analysts.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities.

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