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Malaysia – JobStreet reports Q2 growth and sale of job board business

21 August 2014

Malaysian job board JobStreet Corporation Bhd. (JOBST: KLS) yesterday reported revenue for the second quarter ending 30 June 2014 of MYR 51.3 million (USD 16.2 million), an increase of +10.3% from MYR 46.5 million (USD 14.7 million) a year ago.

The company achieved a pretax profit of MYR 28.7 million (USD 9.1 million), up by +27% compared with MYR 22.6 million (USD 7.1 million) last year. Net profit for the year rose by +19.3% to MYR 19.8 million (USD 6.2 million), up from MYR 16.6 million (USD 5.2 million) in Q2 2013.

In its financial statement, the company advised: “The increase was mainly due to the strong sales of online job posting services, which grew +18.8% year-on-year in Q2 especially in the group’s core markets of Malaysia, Singapore, Indonesia, and the Philippines.”

“Revenue from the offline recruitment services contracted -25%, year-on-year, during the quarter. The growth in revenue contributed to an increase in operating profit margin to 48.5% compared with 47.5% in Q2 2013.”

It was announced earlier this week that Australian job board SEEK has reached an agreement with JobStreet on a revised purchase consideration of MYR 1.89 billion (USD 598.5 million) to acquire the company’s online job board business. The deal is targeted for completion by the end of September 2014.

During the second quarter, JobStreet also issued 49.4 million new ordinary shares in order to acquire the remaining 40% of JobStreet Philippines.

Founded in 1995, JobStreet claims to be the leading job site in Malaysia (responsible for 60% of revenue). JobStreet also operates in India, Indonesia, Japan, Hong Kong, Philippines, Singapore, Thailand and more recently opened in Vietnam. The firm provides online recruitment and human resource management services. The Group currently services over 80,000 corporate customers and over 11 million jobseekers in its database.