Third-quarter revenue at Randstad Holding NV rose 9% on an organic basis, which excludes the impact of currency, acquisitions and divestitures and adjusts for working days. European markets — with topline growth of 11% — drove the increase, led by Italy’s 27% increase in revenue and France and Iberia, up 14% each on an organic basis.

Revenue was unchanged on an organic basis in North America, Randstad’s largest market. Growth in the US was flat overall with US staffing/inhouse business edging up 1%, impacted by weather conditions, and revenue in the US professionals business down 2%. Canadian revenue increased 6%, reflecting tougher comps.

Third-quarter revenue in Randstad’s “Global Businesses” reporting segment rose 17% organically with the increase driven mainly by Randstad Sourceright, the MSP and RPO business; while Monster sales growth was down by 16%, according to the company. The Global Business segment includes Randstad Sourceright, Monster; outplacement provider RiseSmart and European freelance marketplace twago.

Randstad also reported a one-time charge of €21 million (US$24.8 million) to third-quarter operating expenses as part of a cost optimization program at Monster. The company had acquired Monster last year.

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“Our organic sales growth remained robust in Q3, despite tougher comparisons versus Q2,” said CEO Jacques van den Broek. “Strong momentum in Europe continued supported by our digital initiatives, while growth in our North American business remained stable when adjusted for the hurricane impact.”

Revenue by geography

Third-quarter growth rates below are organic:

North America

• Revenue was flat and perm fees rose 2%. Combined US businesses was flat. US staffing/inhouse business edged up 1%, impacted by adverse weather conditions. US professionals revenue fell 2%. In Canada, revenue rose 6%, reflecting tougher comps.

Netherlands

• Revenue edged up 1%. Overall perm fees rose 4%. Staffing and inhouse businesses rose 2%, with growth impacted by a strong focus on client profitability. Professionals business revenue rose 5%, while profitability further improved.

France

• Revenue rose 14%. Perm fees rose 37%. Staffing/inhouse revenue rose 13%. Professionals business revenue rose 19%, driven by Expectra and healthcare.

Germany

• Revenue per working day rose 10%. Combined staffing and inhouse business revenue rose 10%, while professionals revenue rose 11%.

Belgium & Luxembourg

• Revenue rose 9%, reflecting tougher comps. Staffing/inhouse revenue rose 9%, while professionals revenue was up 13%.

Iberia

• Revenue rose 14% with staffing/inhouse combined growing 14% and professionals up 10%. In Spain revenue was up 17%. The company had a focus on permanent placements on Spain with permanent placement revenue up 23%. In Portugal, revenue rose 6%.

Italy

• Revenue per working day in Italy rose 27% year over year. The company said the integration of Obiettivo Lavoro is progressing well and ahead of expectations.

Other European countries

• Across “other European countries,” revenue per working day grew by 13%. In the UK, revenue rose 10%, while perm fees fell 7%. In the Nordics, sales rose by 12% on an organic basis. Revenue in Randstad’s Swiss business rose 21%. In Poland, revenue growth accelerated to 14%.

Rest of the world

• Overall revenue in the “rest of the world” region rose by 10% on an organic basis. In Japan, revenue rose 6%. Revenue in Australia/New Zealand rose 9%, reflecting tougher comps, while revenue in China rose 18%. Randstad’s business in India rose 9%, while in Latin America revenue rose 19%, driven by Argentina and Chile.

Revenue by business line

Outlook

In September, revenue rose at a pace similar to the 9.0% increase in the third quarter and development of volumes in early October indicate a continuation of the Q3 growth rate. There will be an adverse 2.4% comparison in the fourth quarter. Gross margin and operating expenses are expected to be stable sequentially in the fourth-quarter.

There will be an adverse one-half working day impact in the fourth quarter. M&A activity will be limited in the coming quarters.

Share price and market cap

Shares in Randstad fell 4.90% today to €52.02 and the company had a market cap of €9.53 billion (US$11.20 billion), according to Yahoo.