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View All NewsRandstad Q4 revenue flat; Europe slows, firm records impairment for Monster
Randstad NV reported fourth-quarter revenue was stable, edging up 0.3% on an organic basis — which excludes the impact of acquisitions, divestitures and currency. The Netherlands-based company noted robust growth in the North America, but cited slowing activity in Europe.
Net income fell 2% in the fourth quarter. Randstad said net income was dragged down by impairments of €103 million (US$117.8 million) related to job board Monster, of which €33 million (US$37.7 million) was restructuring cost as revenue did not recover in line with initial projections.
| (€millions) | Q4 2018 | Q4 2017 | % change | % organic change | Q4 2018 (US$millions) |
| Revenue | € 6,101 | € 5,978 | 2% | 0% | $6,978 |
| Gross profit | € 1,205 | € 1,200 | 0% | -2% | $1,378 |
| Gross margin | 19.8% | 20.1% | |||
| Operating profit | € 149 | € 263 | -43% | - | $170 |
| Net income | € 194 | € 198 | -2% | - | $222 |
North American revenue rose 3% year over year on an organic basis in the fourth quarter. Perm fees rose 15%. US staffing/inhouse services increased 5% year over year, while US professionals revenue was flat. In Canada, revenue rose 1%.
However, French revenue fell 4% on an organic basis in the fourth quarter, and revenue from Germany fell 7% on an organic basis.
Revenue in the company’s “rest of the world” segment rose 12% on an organic basis in the fourth quarter. The segment includes Australia, New Zealand, Japan, China and Latin America.
At RPO and MSP division Randstad Sourceright, included in the company’s “global business” segment, revenue rose 8% an organic basis in the fourth quarter. However, Monster revenue, also in the global business segment, fell 17% organically in the fourth quarter, an improvement over the decline of 15% in the third quarter. Monster last week cut approximately 5% of its global workforce, which translates to about 100 affected employees, as it works toward profitable growth.
Revenue by geography
| (€millions) | Q4 2018 | Q4 2017 | % change | % organic change | Q4 2018 (US$millions) |
| North America | € 1,114 | € 1,038 | 7% | 3% | $1,274 |
| France | € 925 | € 947 | -2% | -4% | $1,058 |
| Netherlands | € 902 | € 865 | 4% | 3% | $1,032 |
| Germany | € 565 | € 589 | -4% | -7% | $646 |
| Belgium & Luxembourg | € 417 | € 409 | 2% | 0% | $477 |
| Italy | € 423 | € 412 | 3% | -1% | $484 |
| Iberia | € 370 | € 372 | -1% | -4% | $423 |
| Other European countries | € 575 | € 569 | 1% | 1% | $658 |
| Rest of the world | € 508 | € 478 | 6% | 12% | $581 |
| Global businesses | € 309 | € 305 | 1% | 0% | $353 |
Revenue by business line
| (€millions) | Q4 2018 | Q4 2017 | % change | % organic change | Q4 2018 (US$millions) |
| Staffing | € 3,151 | € 3,115 | 1% | -2% | $3,604 |
| Inhouse Services | € 1,361 | € 1,379 | -1% | 2% | $1,557 |
| Professionals | € 1,287 | € 1,185 | 9% | 6% | $1,472 |
| Global businesses | € 309 | € 305 | 1% | 0% | $353 |
Full-year results
| (€millions) | 2018 | 2017 | % change | % organic change | 2018 (US$millions) |
| Revenue | € 23,812 | € 23,273 | 2% | 4% | € 27,236 |
| Gross profit | € 4,701 | € 4,706 | 0% | 2% | $5,377 |
| Operating profit | € 813 | € 860 | -5% | - | $930 |
| Net income | € 704 | € 631 | 12% | - | $805 |
Quote
“Our revenue was stable organically year-on-year in Q4, reflecting robust sales growth in North America and the rest of the world, but slowing activity in Europe in line with recent macro trends,” CEO Jacques van den Broek said.
Guidance
Revenue growth in January increased at a pace similar to the 0.3% in the fourth quarter and development of volumes in early February indicates a continuation of the January growth trend. However, first-quarter gross margin is expected to be modestly lower sequentially.
Share price and market cap
Randstad shares were up 4.29% to €45.48 in Amsterdam at 10:31 a.m. Eastern time; the company had a market cap of €7.99 billion, according to FT.com.