Seek's profit has been hit by writedowns

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  • Seek posted a 25% lift in full year revenue of $1.29 billion
  • Underlying net profit after tax was $229.5 million, up from $220.8 million last year.
  • Statutory profit was $53.2 million, dragged down by $147 million of significant items.

Jobs portal Seek lifted revenue by a quarter and improved underlying results but statutory profit was dragged down by significant items relating to investments in Latin America.

The company posted a 25% lift in full year revenue of $1.29 billion.

Underlying net profit after tax was $229.5 million, up from $220.8 million last year, but statutory profit was down 84% to $53.2 million, dragged down by $147 million of significant items.

But the company declared record total 2018 dividends of 46 cents a share, up 5%.

CEO and Co-Founder Andrew Bassat says the company is performing strongly across five out of six areas.

“Our three biggest businesses, SEEK ANZ, SEEK Asia and Zhaopin are all travelling well,” he says.

“We are disappointed with the performance of our LatAm businesses. We remain committed to these markets and hopeful greater strategic focus, resourcing under the AP&A structure and an improving economy can over time assist in turning around performance.”

Seek posted a non-cash impairment charge of $119 million against the carrying value of Brasil Online, $59 million on OCC (Online Career Center Mexico), and a non-cash fair value gain of $36 million on the investment in Maimai.

The company expects revenue growth in 2019 in the range of 16% to 20%, much of it from Asia and Australia.

“Our FY19 outlook for aggressive investment reflects our high conviction view that SEEK is well placed to capture large growth opportunities,” says Bassat.

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