Daily News

View All News

Japan – Temp Holdings sees jump in profits for nine months results

12 February 2016

Temp Holdings (2181: JP), the second largest staffing firm in Japan, reported consolidated revenue for the nine months ending 31 December 2015 of JPY 375.8 billion (USD 3.3 billion), an increase of 28.8% compared with JPY 291.8 billion (2.6 billion) during the previous period of nine months ending 31 December 2015.

JPY in millions Nine months ending 31 December 2016 Nine months ending 31 December 2015 % Change
Revenue 375,826 (USD 3.3 billion) 291,876 (USD 2.6 billion) 28.8%
Gross Profit 89,550 (USD 794 million)  70,061 (USD 629 million) 27.8%
EBITDA 26,917 (USD 239 million) 20,749 (USD 184 million) 29.7%

Acquisitions (which included Panasonic Excel Staff, P&P Holdings and Capita Pte), added JPY 65.8 billion (USD 583 million) to revenue and, on an organic basis, revenue grew 6.6% over the nine month period.

Revenue grew by 35.2% in the company’s temporary staffing/BPO segment (or 5% organically) to JPY 295.0 billion (USD 2.6 billion) while the recruiting business grew 15.1% to JPY 48.9 billion (USD 434 million)

On an organic basis, EBITDA of JPY 26.9 billion (USD 238 billion) was 15.0% higher than that recorded over the prior peiod.

Temp Holdings, through its 77 subsidiaries and two affiliated companies, provides temporary staffing, placement, consulting, and outsourcing services in Japan, the United States, Hong Kong, China, Taiwan, Korea, Singapore, Indonesia, and Vietnam. The company does not provide a geographical breakdown of revenue.

Forecasting the full financial year which ends on 31 March 2016 the company believes it will achieve revenue of JPY 515 billion (USD 4.2 billion) up 28.4% compared to the previous year, ordinary income of JPY 26.2 billion (USD 213 million) up 10% and net income of JPY 15.25 (USD 124 million) up 13%.

On Friday, Temp Holdings closed at JPY 1,335 (USD 11), down -8.44% on the day and 9.58% above its 52-week low of JPY 1,218.33 (USD 10.8), set on 13 February 2015. Based on its current share price, the company has a market value of JPY 343.74 billion (USD 3 billion).