Regional News

Political turmoil in Latin America leads to a downturn for Seek

By Editor 0 Comments NEWS, Regional News

Following political and economic issues across Latin America, Seek has recently reported an unfortunate downturn in their financial outlook after the company was "forced to write down key assets" in the area.

The online job agency today reaffirmed a total impairment charge of $178 million it warned investors about earlier this month, comprised of $119 million against the carrying value of its Brazilian subsidiary Brasil Online and $59 million against its Mexican arm OCC.

As a result, Seek's net profits have dropped sharply from the $340.2 million it recorded in FY17 to just $53.2 million in FY18.

In a statement, the company claims "deterioration in economic and political conditions have impacted financial performance" in Brazil, while political uncertainty, competitive intensity, and operational issues have jarred OCC in Mexico.

Seek CEO and co-founder Andrew Bassat remains optimistic regarding the future of the Latin American market despite its poor performance.

Read more here.

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