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Denmark – Jobindex benefits from acquisitions and investments

19 November 2013

The Danish online job board Jobindex A/S (JOBNDX:CPH) has reported Q3-2013 net sales of DKK 33 million (€4.4 million), an increase of +26% compared to DKK 26 million (€3.4 million) for the same period last year. Operating profit before interest and tax reached DKK 5.7 million (€0.8 million), compared with DKK 8.2 million (€1.1 million) for the third quarter of 2012.

Most of the growth was fuelled by the acquisition of Computerworld / IDG Denmark, which helped Jobindex move into the media market and established Jobindex Media. Without the acquisition of Computerworld, the revenue would be DKK 28.3 million (€3.8 million), an increase of +7 % year-on-year; and operating profit before interest and tax would be DKK 8.3 million (€1.1 million), an increase of +2% compared to DKK 8.2 million (€1.1 million) for the third quarter of 2012.

Similarly to other media businesses, Computerworld experienced a significant decline in ad revenue after the summer, when sales of online advertisement space developed less well than budgeted. Consequently Computerworld made ​​a loss of DKK 1 million (€0.1 million).

On the other hand, other parts of the business have shown strong results, including the training department. IDG Courses sells its own and other businesses’ IT courses; while Jobindex Courses markets 6-week courses programmes for the unemployed. Jobindex Courses is an example of a business from Computer World, which has been renamed and is now being marketed under the Jobindex brand, and this has had a positive impact on revenue. Events are another business segment that the company has high expectations of. A large Computerworld Summit will be held for CIOs in April 2014.

Jobindex and Computer World are two different companies with different business areas and different cultures. There is a big difference between running a job database, and a news service. The plan is not to merge the two companies, but to drive businesses forward as two separate companies cooperating in a number of areas, but establish a number of common features that supports both companies. The first is to set up a marketing function which will provide some economies of scale without all the disadvantages a merger would entail.

Jobindex is expecting some improvements in the job market in the future, in turn reviving investments and demand for staff; but the company does not see any indications that this will happen in 2013 or 2014. The group’s strategy is to invest when the market is down; this is reflected by current investments aimed at strengthening the organisation, developing new products and investing in companies that have a strong brand.

However, some economic indicators have started to improve already, and both equity investors and operators have become more optimistic. A leading indicator for the Danish labour market shows that 27% of executives with more than 35 employees are expecting to hire employees within the next 6 months, while only 22% of respondents are expecting to reduce their workforce.

The increase can also be traced in the number of job advertisements. Back in December 2012 Jobindex issued a report entitled "Weak recovery in the labour market"; but the number of job advertisements began to rise again in the autumn. The latest report from Jobindex, published in November 2013, revealed that as many as 16,500 new jobs had been posted online in October, an increase of 800 jobs compared to September.

The market has been increasing slightly since the bottom in 2009: compared with October 2009, the number of job advertisements rose by approximately 3,000, representing an increase of +5% per year. In the past year, the number of job ads also increased by +5%, primarily driven by an increase of +20% in the number of offers of public advertisements while the number of private job advertisements has increased by only +3% . Over the past two months, the number of private job advertisements have also begun to rise, indicating that the greater optimism among employers will mean more job listings. However, we are still some way from the pre-crisis levels, which saw more than 30,000 new jobs posted on the Internet every month.

The company adds in its statement that Jobindex has experienced increasing traffic in recent months and has grown to be the 20th largest website in Denmark according to the Danish Media toplist, with over 400,000 users per per month. Jobindex claims to account for over 60% of all sessions on commercial job boards in Denmark.

In early trading, the company’s share price increased by +1.27% to DKK 399 (€53.49), an increase of +3.37% compared with a year ago. Based on its share price, the company has a current market value of DKK 359.1 million (€48.1 million). 


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