Randstad Holding NV’s revenue rose across Europe in the fourth quarter, but growth was not as quick in North America. The company today reported total fourth-quarter rose 9% on an organic basis, which excludes the impact of currency, acquisitions and divestitures and adjusts for working days.

In North America, revenue edged up 1% on an organic basis. Revenue in Randstad’s US staffing/inhouse business rose 1%, but revenue in the US professionals business fell 1%. Canadian revenue increased 10%, reflecting continued acceleration.

European markets drove the growth. Fourth-quarter revenue in France, the company’s largest single European market, rose 12% on an organic basis. Fourth-quarter revenue rose 26% in Italy and 15% in Iberia.

Fourth-quarter revenue in Randstad’s “Global Businesses” reporting segment rose 7% organically with the increase driven mainly by Randstad Sourceright, the MSP and RPO business; while Monster sales growth fell 15%, according to the company. The Global Business segment includes Randstad Sourceright, Monster, outplacement provider RiseSmart and European freelance marketplace twago. Randstad sold Monster’s Asia Pacific business in a deal that closed Feb. 8 for approximately €10 million (US$12.3 million).

Quote

“We aim to gain further market share, driven by our differentiating Tech & Touch strategy, lifting the barriers to entry,” said CEO Jacques van den Broek. “We are integrating technology into our everyday activities in such a way that we create experiences for our clients and candidates that are smart, personal and effective. The digital transformation we are going through as a company culminated in the launch of our new brand promise in the last quarter of 2017: Human Forward.”

Revenue by geography

Fourth-quarter growth rates below are organic:

North America

• Revenue edged up 1% and perm rose 5%. Revenue of Randstad’s combined US businesses was flat. US staffing/inhouse services grew by 1%. US professionals revenue was down 1%. In Canada, revenue was up 10%, showing continued acceleration.

Netherlands

• Revenue rose 3%. Overall perm fees were flat. Staffing and inhouse businesses rose 2%, with growth impacted by a strong focus on client profitability. Professionals business revenue rose 5%.

France

• Revenue rose 12%, still ahead of the market despite markedly tougher comps. Perm fees rose 37%. Staffing/inhouse services revenue rose 11%. Professionals business revenue rose 18%, driven by Expectra and healthcare.

Belgium & Luxembourg

• Revenue rose 10%, ahead of the market. Staffing/inhouse revenue rose 9%, while professionals revenue was up 30%.

Iberia

• Revenue rose 15% with staffing/inhouse combined growing 15%. In Spain, revenue was up 16%. The company had a focus on permanent placements on Spain with permanent placement revenue up 16%. In Portugal, revenue rose 12%.

Italy

• Revenue per working day in Italy rose 26% year over year. The company said the integration of Obiettivo Lavoro continues to deliver results ahead of expectations.

Other European countries

• Across “other European countries,” revenue per working day grew by 12%. In the UK, revenue rose 11%, while perm fees fell 9%. In the Nordics, sales rose by 13%. Revenue in Randstad’s Swiss business rose 20%.

Rest of the world

• Overall revenue in the “rest of the world” region rose by 10% on an organic basis. In Japan, revenue rose 9%. Revenue in Australia/New Zealand rose 8%, while revenue in China fell 10%. Randstad’s business in India fell 3%, while in Latin America revenue rose 27%, driven by Argentina and Brazil.

Global businesses

• Overall revenue growth per working day was up by 7%, mainly driven by Randstad Sourceright. Monster sales growth fell by 15%. Randstad maintains its ambition of a break-even EBITA result for Monster in 2018.

Revenue by business line

Full-year results

Outlook

In January, revenue rose at a pace of about 7% increase in the third quarter and development of volumes in early February indicate a continuation of the January growth rate. Gross margin is expected to be broadly stable sequentially and operating expenses are expected to increase sequentially in the first quarter. There will be an adverse one-half working day impact in the first quarter.

Share price and market cap

Shares in Randstad rose 2.00% today to 56.00 and the company had a market cap of €10.26 billion (US$12.59 billion), according to Yahoo.