Shares in Australian jobs website Seek plunged 11% this morning following an earnings downgrade to its learning division.
The company now sees EBITDA for Seek learning for FY 2015 of $31-33 million.
In a statement released earlier today Seek CEO Andrew Bassat noted a one-off IT issue stemming from a systems upgrade by TAFE NSW led to the lowered earnings guidance.
“Seek Learning had fulfilled its sales obligations but TAFE NSW’s IT issues resulted in errors and significant delays in the enrolment process, ultimately leading to incomplete enrolments and very high withdrawal rates.
This has been an ongoing issue. Until recently based on discussions with TAFE NSW, we believed the issues would be resolved and the financial impact mitigated. Unfortunately, this has not eventuated.
Our FY15 results in SEEK Learning have also been affected by a competitive environment. We have implemented a series of strategic and operational initiatives to drive improved performance.”
While the company believes it’s a one-off issue, it hasn’t been enough to appease investors who have sold down the shares. At present the stock is trading at $14.66, the lowest level seen since February 18 last year.