Seek Limited’s (ASX: SEK) stock tumbled 8.85 per cent on August 06, 2018 after the release of the FY18 update in which the company recognized the net impact of three key significant items of $142 million. This impairment includes a non-cash impairment charge of $119 Mn against the carrying value of Brasil Online, an impairment charge of $59 million against OCC (Mexico), and non-cash fair value gain of $36 million on investment in Maimai. Moreover, the company will also recognize a non-cash impairment charge of $178 million against the carrying value of Brasil Online (Brazil) and OCC (Mexico) for FY18 results due to macroeconomic condition that comprises of political uncertainty, intense competition, operational issues in education, etc.
According to the management, it is unfortunate that the group have had to reduce the carrying value of Brasil Online and OCC. As a result, the performance has been disappointing, yet the company remains to turn around performance in years ahead at the back of improving economic conditions, resourcing under the AP&A structure over the time.
However, the company expects its revenue growth of 24 per cent as compared to the prior guidance in the range of 20% to 25% for FY18. EBITDA to be around 15 per cent for the full year as compared to the prior guidance in between 14 per cent and 15 per cent. Further, the group’s NPAT before deducting investments in early-stage growth options of $30 million is anticipated to be around $230 million for FY18 which is broadly similar to the prior guidance.
Seek Limited traded at a market price of $19.98 with the market capitalization of circa $7.7 Bn (AEST: 02:30 P.M.)
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.