Seek says it expected to recognise a loss in FY20 after writing down the value of its investments in Brazil and Mexico by another $190 million to $230 million, just two years after taking a $178 million impairment on the employment websites.
Seek on Monday said the coronavirus “has had a devastating economic impact across Brazil and Mexico” that is having a negative impact on cash flows for its businesses there.
The company said it would recognise an aggregate impairment in the range of $130 million to $170 million in its Brasil Online and OCC Mundial businesses in the two countries.
The company said it would also recognise a $60 million impairment against four early-stage minority investments “that operate outside our core themes”.
In 2018, Seek said it would book a $119 million impairment on its Brazil business and a $59 million on its Mexican one.
The company said it expected to recognise a loss in FY20 as a result of these non-cash impairments, but they would not have any material impact on its debt covenants.
The company has obtained a temporary increase in those covenants through to June 30, 2021.
“No decision has been made on our full-year dividend but expect SEEK to remain prudent in managing its balance sheet,” the company said.
Seek said it that it was seeing a pick-up in business in its Australia, New Zealand and Asia listings since May 2020, after they collapsed in late March and were down 65 to 70 per cent in April.
They are now down 40 to 50 per cent, compared to a year ago, Seek said.
At 1053 AEST, Seek shares were down three cents to $21.66.