Job recruiter reveals shocking losses
Recruiting group SEEK has revealed the financial damage caused by the coronavirus pandemic, saying the outlook for jobs remains uncertain.
The Melbourne-based company posted a loss of $111.7 million for the year ended June 30, a 162 per cent decline compared with the 2019 financial year.
SEEK's overall earning before tax and interest declined by $40.1 million to $414.9 million for the 2020 financial year, a 9 per cent drop compared with the previous corresponding period.
The company said the fall was a direct result of the pandemic throwing the global economy into recession that dried up the jobs market.
Total revenue rose 2 per cent over the year to $1.6 billion.
SEEK chief executive Andrew Bassat said near-term profits would continue to be adversely affected while the pandemic persisted.
"The current macro outlook is highly uncertain," he said.
"Our near-term profits will be impacted by COVID-19, but our focus is on executing and investing for the long term. We are confident our investment and long-term focus is the right approach as SEEK's revenue opportunity remains large and under-penetrated."
SEEK said it was unable able to provide financial guidance for the 2021 financial year while the global macroeconomic environment remains highly volatile and unpredictable.
Mr Bassat said SEEK's ability to return to normal operating conditions would be highly dependent on the shape of the economic recovery.
"The near term will continue to pose challenges, but we will remain agile to take advantage of
new growth opportunities as they arise," Mr Bassat said.
"Over the long term, our strategy and overall revenue opportunity remain intact albeit COVID-19 will likely impact the time frame to achieve our $5 billion revenue aspirations."
Originally published as Job recruiter reveals shocking losses