Russian job board HeadHunter Group plc (HHR: NSDQ) reported revenue of RUB 7.04 billion (USD 75.7 million) for the second quarter ended 30 June 2023, up 78.0% when compared to the previous year.

The company stated that revenue was up mostly due to strong demand for candidates driving up the number of paying customers and the average consumption, as well as a low base effect. However, according to SUWW, a Dutch foundation supporting Ukrainian victims of war, HeadHunter has been used to recruit military personnel, privateers and police to take part in the Russian invasion of Ukraine. It is unclear how much of HeadHunter’s revenue growth is due to its involvement in the illegal occupation of Ukraine.

SUWW claims that there are hundreds of vacancies on the hh.ru website for the search query military serviceman (военнослужащий) and some of the vacancies expressly indicate that the job opening is for participation in the so called “special military operation”. SUWW’s analysis of the responses to military service vacancies posted on hh.ru shows that, during the military aggression launched by Russia, between 10,000 to 20,000 troops could have been recruited into the Russian army.

The SUWW states that it intends to start legal proceedings against HeadHunter demanding that they put a definitive end to all illegal advertisements posted on hh.ru. HeadHunter representatives told SUWW that they operate in strict compliance with all applicable laws, including Russian antitrust and consumer protection laws, under which the company has no right to refuse to post content that complies with Russian law.

In March 2022, it was reported that three of HeadHuner’s board directors tendered their resignations due to “recent geopolitical developments surrounding the invasion of Ukraine by Russia”.

HeadHuners’s net income for the second quarter was RUB 3.04 billion (USD 32.7 million), compared to a net loss of RUB 321 million (USD 5.2 million) in Q2 2022, mainly driven by the increase in revenue as well as foreign exchange income on cash deposits in foreign currency, that was partially offset by the increase in income tax expense.

Adjusted EBITDA increased by 146.4% and the adjusted EBITDA Margin increased from 42.4% to 58.7%, compared to Q2 2022, mainly due to the increase in revenue, that was partially offset by the increase in personnel expenses.

In the Key Accounts customer segment, revenue increased by 79.6%, driven mostly by average revenue per customer (ARPC) growth as well as an increase in the number of paying customers.

In the Small and Medium Accounts customer segment, revenue increased by 76.9% through a combination of ARPC growth and an increase in the number of paying customers.

In the Other customers in Russia segment, revenue increased by 59.4%, driven mostly by the increase in consumption of career services by recruitment agencies.

In the Other segments, revenue increased by 91.0%, mainly in the ‘Kazakhstan’ and ‘Belarus’ operating segments, largely as a result of the acquisition of new customers, as well as low base effect in Belarus.

HeadHunter also reported revenue of RUB 12.6 billion (USD 135.4 million), an increase of 46.8% when compared to the same period a year ago.

In January 2023, HeadHunter announced that Kismet Capital Group, also based in Russia, has taken a 22.7% stake in the company.

In January, the group also announced the appointment of Dmitry Sergienkov as CEO of the company. Previous CEO Mikhail Zhukov, who led HeadHunter from 2008 to 2023, moved to the position of president of the company.

In July HeadHunter announced that it filed a Form 15F with the US Securities and Exchange Commission with the intention of terminating the registration of its ordinary shares and American Depositary Shares, each representing one Ordinary Share.