Second-quarter revenue at Randstad Holding NV rose 3% on an organic basis, which excludes the impact of currency, acquisitions and divestitures and also adjusts for working days. Gross margin improved to 18.9% from 18.7% in the same quarter of the prior year.

Revenue was flat on an organic basis in North America, Randstad’s largest market. In Randstad’s second-largest market, the Netherlands, revenue rose 3%.

The company reported global MSP spend under management rose 42%.

During the second quarter Randstad announced the acquisitions of Italian staffing firm Obiettivo Lavoro; Careo Group in Japan; and Berlin-based twago, an online marketplace for freelance work. Mergers and acquisitions announced so far this year — including Swedish staffing firm Proffice AB and France-based consulting and engineering firm Ausy — will add about €1.5 billion in revenues on an annualized basis.

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“In Q2, growth continued in Europe, while revenue in the US stabilized; these trends appear to be continuing into July,” CEO Jacques van den Broek said. “M&A activity has been high; with the acquisition of Obiettivo Lavoro, we have achieved a No. 2 position in the Italian market, while by acquiring the Careo Group, we have doubled our presence in professionals in Tokyo. The acquisition of twago, a digital platform, enables us to take a big step in the freelance market.”

Revenue rose on an organic basis in all of Randstad’s major markets except Belgium and Luxembourg, where it declined, and North America and the United Kingdom, which posted no change.

Revenue by geography

Growth rates below are organic:

North America

• Revenue was stable year-on-year. Revenue of Randstad’s combined US businesses was stable in the second quarter. The US staffing/inhouse grew by 1%. US Professionals revenue was down 2%. In Canada, revenue was up 2%, ahead of a challenging market.

Netherlands

• Revenue rose 3% year-on-year, impacted by the decline of government payrolling and a difficult comparison base. In addition, price pressure continued. Overall perm fees were up 18%. The staffing and inhouse businesses grew 2%. Excluding the lost payroll revenue, the staffing and inhouse business rose 8%. Professionals business grew 11%.

France

• Revenue rose 4%, impacted by the strikes (negative effect of approximately 2%). Staffing and inhouse revenue increased 3%. Professionals business was up 10%, driven by the healthcare business. Perm fees were up 37% compared to last year.

Germany

• Revenue per working day rose 5% year-on-year. The combined staffing and inhouse business increased 4%, while professionals rose 7%.

Belgium and Luxembourg

• Revenue fell 2%, impacted by the loss of some large accounts (partially driven by a focus on client profitability, Randstad reported), and by the terrorist attack at Brussels Airport. The staffing and inhouse business fell 2%, while the professionals business rose 6%.

Iberia

• Revenue rose 5%. Spain increased 5%, with staffing/inhouse combined up 5%, professionals up 5% and perm placements up 42%. In Portugal, revenue rose 5%; perm rose 62%.

United Kingdom

• Revenue per working day in the UK was stable compared to the prior year. Gross profit fell 2%. Overall perm fees fell 5% year over year.

Other European countries

• Across “other European countries,” revenue per working day rose 9%. This was supported by growth continuing in Italy, which rose 12%. In Poland, revenue growth continued, reaching 13%. Revenue in Randstad’s Swiss business rose 10% year over year. In the Nordics, revenue fell 7%. The Proffice acquisition (consolidated as of Feb. 4) added €108.5 million in revenue in the second quarter.

Rest of the world

• Overall revenue in the “rest of the world” region rose 4%. In Japan, revenue rose 4%. Revenue in Australia/New Zealand rose 4%, while revenue in China rose 16% year over year. Randstad’s business in India fell 1%, while in Latin America revenue rose 6%, driven by Argentina and Chile.

Revenue by business line

Share price and market cap

Shares in Randstad closed down 4.22% to €38.00 (US$41.71). The company had a market cap of €6.96 billion (US$7.64 billion), according to Google.