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Denmark – JobIndex results illustrate a stagnant market

07 May 2012

The Scandinavian internet job board, Jobindex A/S (JOBNDX:CPH), has announced first  quarter results.  Revenue was unchanged at €3.94 million compared to Q1 2011 but profit before interest and tax (EBIT) fell  -25% to €1 million from €1.34 million as previously forecast.

The company has expanded its new business department which cultivates small new customers and increased investment in Sweden and Norway.  Its stated goal is to grow despite a stagnant job market, and compete with the social network of LinkedIn, which Jobindex identifies as its biggest competitor. Jobindex maintains its expectations for 2012 on net sales of €14.78 million and a profit before tax of €3.36 million. The number of job ads fell slightly in April, but the company expects a relatively stable job market throughout the year provided that the European debt crisis does not flare up again.

According to the company, the total number of job advertisements on the Jobindex site reached a low of 13,000-14,000 new job listings each month in 2009 and has been increasing slightly since. The economic uncertainty in the autumn of 2011 did not affect the number of vacancies significantly, and in January 2012 Danish Bank and Jobindex issued a report entitled "The labor market is better than its reputation." 

In first quarter of 2012 the number of job advertisements on their website increased by 8% compared the first quarter of 2011.  But in April 2012, the number of job advertisements fell by 5% compared to March; a decline which occurred mainly within the “private salaried” sector, which fall by 12% to its lowest level since 2010. As the company indicates it is too early to conclude anything from a single month, especially April, which is influenced by the Easter holiday, but if the decline continues in the coming months, it will badly impact Jobindex as the majority of its revenue comes from this area.

Looking at the specifics, there is growth year on year in public social and health (+28%) and education sectors (+13%) and growth within private sector categories such as engineering and technology (+17%), industry and handicrafts (+10%) and information (+8%). The other job categories have declined including management and staff (-2%), sales and communications (-4%), trade and services (-4%) and office and economy (-4%). Compared to 4 years ago, all job categories have declined between 30%-70% especially for information technology (-31%) and most of industry and handicrafts (-68%), and the public sector categories such as social and health (-50%) and education (-54%) are also significantly lowerJobindex’s share price is unchanged at 361.00 Kroner, 3.73% below its 52-week high of 375.00 Kroner, set on 3 May 2012. This means the company is valued €43.67 million.

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