The SEEK Limited (ASX: SEK) share price is on the move on Monday after the release of a trading update.
At the time of writing the job listings company's shares are down slightly to $21.67.
What did SEEK announce?
This morning SEEK released a further update on how its businesses are performing during the pandemic.
According to the release, the SEEK ANZ and SEEK Asia businesses have experienced a consistent trend of improving weekly billings since their collapse in March and April.
In April SEEK's billing declines for these businesses were in the range of -65% to -70% compared with the prior corresponding period. Whereas in June, the businesses are now observing weekly billing declines in the range of -40% to -50%.
Things are even better in China for its Zhaopin business. In February its billings were 60% lower than management's expectations. Whereas in May, its billings improved to be around 10% behind the prior corresponding period.
Elsewhere, the company notes that its LatAm business has been significantly impacted, but both its OES business and ESV investments are performing well.
What does this mean for its FY 2020 result?
In light of the above, management is expecting revenue of approximately $1,575 million and earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately $410 million in FY 2020.
Though, it has warned that this is an estimate only to keep the market as well informed as possible. It remains subject to audit and could still be impacted by a range of factors including foreign exchange, second wave impacts, macro conditions, and business performance.
On the bottom line, SEEK expects to post a loss after tax on a reported basis. This follows its decision to recognise an aggregate non-cash impairment charge of $190 million to $230 million. This charge relates to its Brasil Online, OCC Mundial, and four non-core minority investments.
These impairments will not have any material impact on SEEK's debt covenants. Nevertheless, SEEK has obtained a temporary increase to key covenant limits in its senior syndicated debt facility and is strengthening its balance sheet with a $175 million senior note offer.
