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View All NewsGermany – Amadeus FiRe reports positive revenue, temporary staffing segment softens
Amadeus FiRe (AAD: GR), the German staffing firm, reported revenue for the nine months ending 30 September 2016 of €128.9 million, an increase of 1.6% compared with €126.9 million during the same period last year.
| 9 months ending 30 September 2016 | 9 months ending 30 September 2015 | Change | |
| Revenue | €128.9 million | €126.9 million | 1.6% |
| Gross Profit | €56.4 million | €54.0 million | 4.6% |
| EBITDA | €23.1 million | €21.7 million | 6.3% |
Amadeus FiRe operations two divisions; Personnel Services and Training Services. The revenue by division and segment was as follows for the nine month period:
| 9 months ending 30 September 2016 | 9 months ending 30 September 2015 | Change | |
| Temporary Staffing | €90.8 million | €92.2 million | (1.5%) |
| Interim & Project Management | €7.3 million | €7.2 million | 0.8% |
| Permanent Placement | €15.9 million | €13.6 million | 16.7% |
| Total Personnel Services | €114.1 million | €113.1 million | 0.9% |
| Training Services | €14.8 million | €13.7 million | 7.9% |
| Total Revenue | €128.9 million | €126.9 million | 1.6% |
According to the company, the lower revenues from temporary staffing compared to the previous year is due to the shortage of qualified temporary staff. Furthermore, customers are increasingly offering temporary staff a permanent position.
The increase in permanent placement revenue is attributable to the change in companies’ hiring practices. The tight market for qualified personnel is still making it difficult for companies to fill vacant positions with suitable applicants by themselves. This is why they are increasingly using the services of personnel services providers.
For the training segment, the company states that the improved use of the offered courses together with an increased supply in the seminar business had a positive impact on the segment revenue.
Furthermore, Amadeus FiRe also states that the competitive labour market and Germany’s positive economic situation makes it difficult for the temporary staffing sector to find qualified specialists. The company expects permanent placement development to remain stable for the last quarter and its training segment to generate higher earnings in the second half of the year due to positive performances in the first half.
Looking to the future, the company states that the use of temporary staffing by customer companies requires a flexible labour market. The extent to which this flexibility will be affected by the implementation of the draft law dated 1 January 2017 is not yet foreseeable.
In trading today, Amadeus Fire traded at €69.03, down 1.39% on the day and 17.68% below its 52-week high of €83.86, set on 20 October 2015. Based on its current share price the company has a market value of €355.7 million.