Seek posts 84pc profit fall; IAG slips; Dexus in 37pc lift
Online job search company Seek has posted an 84 per cent slide in profit, insurer IAG has disappointed, while a buoyant leasing market has helped Dexus Property Group boost profit by 37 per cent.
Online job search company Seek has posted an 84 per cent slide in profit while a buoyant leasing market has helped Dexus Property Group boost profit by 37 per cent.
In other results today, insurer IAG has posted a slight fall in full-year net profit as a near 11 per cent rise in insurance profit was offset by a fall in investment income and a higher tax bill.
Seek's Americas operations weigh on result as chairman exits
Seek (ASX: SEK) has reported an 84 per cent slide in full-year net profit, hit by significant items totalling $147 million relating to its Brazilian and Mexico operations, and announced the departure of chairman Neil Chatfield.
Net profit fell to $53.2 million for the year ended June 30 from $340.2 million a year earlier, which was flagged earlier this month by the company.
Excluding significant items and early stage ventures, underlying profit after tax rose 3.9 per cent to $229.5 million, with Seek declaring a fully-franked final dividend of 22 cents a share, up 1 cent from a year earlier.
Morningstar analyst Gareth James is unfazed by the hit to the overseas operations.
"Both businesses have been struggling with challenging macroeconomic conditions for some time, but we don't believe either faces structural challenges, and we expect both to recover eventually,” James wrote in an update earlier this month.
"Combined, these businesses only contribute around 7 per cent of group EBITDA, meaning they aren't key earnings drivers for the group and their book value has a high degree of subjectivity."
Seek has also announced the departure of chairman Neil Chatfield
Morningstar's fair value estimate for Seek is $18 a share, which is trading at $20.77.
Seek's net profit for the year ended June 30 slipped 0.6 per cent to $923 million, from $929 million a year ago. Revenue rose 2.6 per cent to $16.41 billion, and the insurer flagged gross written premium growth of two to four per cent for 2018/19.
Dexus posts 37pc profit boost
Sydney's largest office landlord, Dexus (ASX: DXS), has reported a 37 per cent boost in full-year profit.
Dexus chief executive Darren Steinberg said full-year net profit after tax had risen to $1.73 billion, an increase of $465 million from the previous year.
The key drivers included funds from operations, which rose by $35.6 million, and net revaluation gains of investment properties of $1.2 billion, up 10.5 per cent across the total portfolio.
As previously guided, Dexus expects to deliver distribution per security growth of about 5 per cent for the 12 months ending June 30 2019.
Dexus is trading at $10.40. Morningstar's fair value estimate is $9.10.
IAG's net profit slips 0.6pc to $923m
Shares in Insurance Australia Group (ASX: IAG) have slid after the insurance giant posted disappointing full-year results.
Net profit for the year ended June 30 slipped 0.6 per cent to $923 million, despite a near-11 per cent rise in insurance profit but this was offset by a fall in investment income and a higher tax bill.
Revenue rose 2.6 per cent to $16.41 billion.
The company's Australia Consumer division, home and motor insurance, had a strong year, managing director Peter Harmer said, as rate increases addressed claims inflation challenges.
"There was a modest improvement from Australia Business and a continued strong performance from New Zealand," he said in a statement.
Mr Harmer said the previously-announced sale of IAG's operations in Thailand, Indonesia and Vietnam will be completed in 2018/19 and deliver a net profit after tax of more than $200 million.
The company on Wednesday outlined a $592 million capital management initiative, comprising a capital return of 19.5 cents per share and a special dividend of 5.5 cents a share.
The insurer behind the NRMA and CGU brands has flagged gross written premium will grow between two and four per cent in 2018/19.
IAG will pay a fully-franked final dividend of 20 cents a share, up from 13 cents a year earlier.
At 1pm Sydney time, shares in IAG were down 5.6 per cent to $7.77, slightly up on Morningstar’s FVE of $7.30.
IAG profit drops slightly
- Net profit down 0.6 per cent to $923 million
- Revenue up 2.6 per cent to $16.41 billion
- Fully-franked final dividend 20 cents/share, plus capital return of 25 cents/sh
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