Seek Ltd, one of the top online job portals, has reported that nearly half of its value comes from sites from Brazil and Mexico, and are anticipating a lull in revenue as "trade and political uncertainty stall growth in both markets".
The move illustrates how a deep recession in Brazil and trade turmoil on both banks of the Rio Grande have stifled the sort of rapid growth the Australian-listed firm hoped for when it earmarked the region for expansion three years ago.
It also underscores how the fallout from a global shift toward protectionism has compounded economic problems in trade-dependent emerging markets.
Seek said its revenue and outlook soured in both Mexico and Brazil, which together comprised almost 16 percent of the A$7 billion company’s first-half revenue. Things would likely get worse before they get better, it added.
Impairments totaled A$178 million ($132 million) on investments previously valued at A$335 million. Core earnings were forecast to rise 5 percent to 8 percent in the year to June 2019, slower than the 15 percent the company said it expected to report for the previous financial year.
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