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View All NewsRandstad Q2: US professional staffing a bright spot, but overall revenue down 2% due to weakness in Europe
Professional staffing in the US was a bright spot for global staffing firm Randstad nv in the second quarter. However, overall revenue at the Netherlands-based staffing giant fell 2% on an organic basis.
While revenue rose in North America and parts of the world outside Europe. It was down in many of its European markets amid uncertain macroeconomic conditions — including Germany where it fell 15%.
“Our organic revenue growth turned slightly negative, reflecting slowing market growth in particularly Germany, the Netherlands and Belgium, mainly related to weakness in automotive-related industries,” CEO Jacques van den Broek said.
Revenue at Randstad Sourceright rose, while revenue fell at Monster.
| (€millions) | Q2 2019 | Q2 2018 | % change | % organic change* | Q2 2019 (US$millions) |
| Revenue | € 5,957 | € 6,022 | -1% | -2% | $6,771 |
| Gross profit | € 1,193 | € 1,191 | 0% | -1% | $1,356 |
| Gross margin | 20.0% | 19.8% | |||
| Operating profit | € 238 | € 240 | -1% | - | $271 |
| Net income | € 166 | € 191 | -13% | - | $189 |
US professional staffing revenue rose 2% in the second quarter on an organic basis, but Randstad indicated its US staffing/inhouse services revenue was stable.
In Canada, revenue was up 1%. Meanwhile, Latin America, which is in the company’s “rest of world” segment, saw revenue rise 28% with growth driven by Argentina and Brazil.
Revenue by geography
| (€millions) | Q2 2019 | Q2 2018 | % change | % organic change* | Q2 2019 (US$millions) |
| North America | € 1,092 | € 1,027 | 6% | 1% | $1,241 |
| France | € 959 | € 975 | -2% | -2% | $1,090 |
| Netherlands | € 852 | € 864 | -1% | -3% | $968 |
| Germany | € 512 | € 616 | -17% | -15% | $582 |
| Belgium & Luxembourg | € 394 | € 411 | -4% | -4% | $448 |
| Italy | € 429 | € 427 | 0% | 0% | $488 |
| Iberia | € 370 | € 375 | -1% | 2% | $421 |
| Other European countries | € 543 | € 555 | -2% | -1% | $617 |
| Rest of the world** | € 520 | € 489 | 6% | 10% | $591 |
| Global businesses | € 293 | € 289 | 1% | -2% | $333 |
Revenue at Randstad Sourceright, which provides RPO and MSP services, rose 4% in the second quarter. On the other hand, Monster revenue fell 16%. Randstad Sourceright and Monster are included in the company’s “global businesses” segment.
Revenue by business line
| (€millions) | Q2 2019 | Q2 2018 | % change | % organic change* | Q2 2019 (US$millions) |
| Staffing | € 3,057 | € 3,161 | -3% | -3% | $3,475 |
| Inhouse Services | € 1,333 | € 1,351 | -1% | -2% | $1,515 |
| Professionals | € 1,281 | € 1,227 | 4% | 3% | $1,456 |
| Global businesses | € 293 | € 289 | 1% | -2% | $333 |
Share price and market cap
Shares in Randstad closed up 2.34% to €47.60 in Europe; the company had a market cap of €8.53 billion.
Other
For a European perspective on Randstad’s results, please see reporting from our London office.
*Organic change excludes the impact of currencies, acquisitions, disposals, reclassifications and, for revenue, adjustment for number of working days.
**The company’s “rest of the world” segment includes Australia, New Zealand, Japan, China and Latin America.