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Malaysia – JobStreet reports Q3 revenue growth

28 November 2014

Malaysian job board JobStreet Corporation Bhd (JOBST: KLS) yesterday reported revenue of MYR 48.8 million (USD 14.6 million) for the third quarter ending 30 September 2014, an increase of +5% compared with MYR 46.5 million (USD 13.9 million) during the same period last year.

The company reported profit before tax of MYR 22.9 million (USD 6.8 million), a decrease of -3% from MYR 23.6 million (USD 7 million) a year ago. Profit for the period decreased by -7% to MYR 16.8 million (USD 5 million), down from MYR 18 million (USD 5.4 million) last year.

Revenue from continuing operations was MYR 1.8 million (USD 537,487) in Q3 2014, compared with MYR 2.3 million (USD 686,789) last year. Revenue from discontinued operations was MYR 47 million (USD 14 million), compared with MYR 44.2 million (USD 13.2 million) in Q3 2013. The discontinued operations relate to the company’s online recruitment business, which it sold to a subsidiary of Australian job board SEEK earlier this month.

The acquisition of JobStreet’s online recruitment business was delayed by the Singaporean Competition Commission (CCS), which expressed concerns that the acquisition would negatively impact the competitiveness of the market.

In August, SEEK committed to a three-year price freeze in order to appease the CCS, advising that it would not enter into exclusive agreements with customers in order to preserve competition in the market. During the month, SEEK also increased its offer price from MYR 1.7 billion (USD 507.6 million to MYR 1.89 billion (USD 564.4 million)

The acquisition was further delayed in October following revelations that SEEK failed to disclose all of its assets in Singapore. CCS expressed concerns that neither party disclosed SEEK’s ownership of another Singapore job board: Jobs.com.sg.

The CCS finally approved the merger after SEEK, among other things, agreed to divest Jobs.com.sg. SEEK committed to finding a buyer within six calendar months. If it fails to do so, SEEK also agreed to appoint one or more independent parties to sell the assets "at no minimum price to a purchaser".

In addition, SEEK also agreed to cap prices at current levels, allowing for inflation, to address concerns that the merger could result in prices of online recruitment advertising services in Singapore increasing.