Randstad (RAND: NV), one of the world’s largest staffing firms, today reported revenue for the second quarter ending 30 June 2016 of €5.1 billion, an increase of 3% on an organic basis compared with €4.8 billion a year ago.

The financial results for the second quarter was broken down as follows:

Underlying EBITA increased organically by 10% to € 239.7 million. Currency effects had a negative impact of € 1.4 million year-on-year. EBITA margin reached 4.7%, up from 4.5% in Q2 2015. On an annualized basis, underlying EBITA margin improved from 4.3% to 4.6%.

"In Q2, growth continued in Europe, while revenue in the US stabilized; these trends appear to be continuing into July," Randstad CEO Jacques van den Broek, said. "M&A activity has been high: with the acquisition of Obiettivo Lavoro, we have achieved a No. 2 position in the Italian market, while by acquiring the Careo Group, we have doubled our presence in Professionals in Tokyo. The acquisition of twago, a digital platform, enables us to take a big step in the freelance market."

Randstad achieved revenue growth across most of its major markets; with revenue in the United Kingdom remaining stable on an organic basis.

Overall permanent fees in the Netherlands were up 18% (Q1 2016: down 19%). Meanwhile, revenue was up 3% year-on-year (Q1 2016: up 6%), impacted by the decline of government payrolling and a difficult comparison base. The group’s Staffing and Inhouse businesses grew 2% (Q1 2016: up 6%). Underlying EBITA margin in the Netherlands was 5.5%, compared to 6.5% last year.

In France, revenue growth was 4% (Q1 2016: 9%), impacted by labour reform strikes and protests (negative effect of approximately 2%). Staffing and Inhouse revenue increased 3% (Q1 2016: up 8%). Perm fees were up 37% compared to last year (Q1 2016: up 27%). The group’s underlying EBITA margin in France was 5.9%, compared to 5.6% last year.

Revenue per working day in Germany was up 5% year-on-year (Q1 2016: up 5%). Combined Staffing and Inhouse business was up 4% (Q1 2016: up 5%), while Professionals was up 7% (Q1 2016: up 8%). Underlying EBITA margin in Germany improved to 5.0%, compared to 4.6% last year.

In Belgium & Luxembourg, revenue was down 2% (Q1 2016: down 3%), impacted by the loss of some large accounts and by the terrorist attack at Brussels Airport. Staffing/Inhouse business was down 2% (Q1 2016: down 2%), while the Professionals business was up 6% (Q1 2016: down 6%). Underlying EBITA margin moved up to 6.3%, from 5.4% last year.

In Iberia, revenue increased 5% (Q1 2016: up 8%). Spain was up 5% (Q1 2016: up 9%), with Staffing/Inhouse combined growing 5% (Q1 2016: up 9%) and Professionals up 5%. In Portugal, revenue improved by 5% (Q1 2016: up 4%). Overall underlying EBITA margin was 4.5% in Q2 2016, compared to 3.8% in the same period last year.

Revenue per working day in the UK was stable compared to the prior year (Q1 2016: up 1%). Gross profit was down 2% (Q1 2016: up 2%). Overall perm fees were down 5% year-on-year (Q1 2016: up 2%). Underlying EBITA margin continued to improve and is now 3.0% (up from 2.0% last year). The company said that the Brexit impact had been “limited so far”.

Across 'Other European countries', revenue per working day grew 9% (Q1 2016: up 10%). This was supported by growth continuing in Italy, which was up 12% (Q1 2016: up 11%). In Poland, revenue growth continued, reaching 13% (Q1 2016: up 11%). Revenue for Switzerland was up 10% year-on-year (Q1 2016: 5%). In the Nordics, on an organic basis, revenue was down 7% (Q1 2016: flat).

The Proffice acquisition (consolidated as of February 4) added € 108.5 million in revenue in Q2, as well as € 4.5 million to EBITA. Overall EBITA margin for the 'Other European countries' region was 3.9% (Q2 2015: 3.3%).

Overall revenue in the 'Rest of the world' region grew 4% organically (Q1 2016: up 5%). In Japan, revenue grew 4% (Q1 2016: up 3%). Revenue in Australia/New Zealand grew 4% (Q1 2016: up 5%), while revenue in China grew 16% year-on-year (Q1 2016: up 6%). Business in India was down 1% (Q1 2016: up 5%), while in Latin America revenue grew 6% (Q1 2016: up 10%), driven by Argentina and Chile. Overall EBITA margin in this region was 1.9%, compared to 0.6% last year.

Randstad operates three primary business segment: Staffing, Professionals, and Inhouse Services, with a breakdown of revenue in Q2 as follows:

In an interview with Bloomberg, Jacques van den Broek said “this is now our 11th quarter of low to mid-single digit growth, so it almost seems like the new normal.”

Revenue grew 3% during Q2, with June up 2%. The development of volumes in early July indicate a continuation of the Q2 growth rate. For Q3, operating expenses are expected to remain stable sequentially on an organic basis. As of Q3, the acquisitions of Obiettivo Lavoro (Italy), Careo (Japan) and twago (digital) will be consolidated. There is no material working day impact.

On 20 June 2016, Randstad announced its intention to launch a cash tender for French consulting firm Ausy, subject to prior completion of the regulatory approvals.

Post Q2 closing, Randstad has reached an agreement on transferring the Finnish operations of Proffice to StaffPoint, a personnel services companies in Finland, effective September 1, 2016. The group is also entering in an exclusive partnership with Staffpoint to serve the Finnish market, securing a leading position in the Nordics.

In trading today Randstad Holding traded at €37.74, down 4.88% on the day and 18.88% above the 52 week low of €31.75 set on 6 July 2016. Based on its current share price, the company has a market value of €7.26 billion.