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Denmark – Jobindex posts revenue growth and plans to increase its market share

17 February 2014

Danish job board Jobindex A/S (JOBND: CPH) reported revenue of DKK 39 million (€5.2 million) for the fourth quarter of 2013, an increase of +39% compared with DKK 28 million (€3.8 million) for the same period last year. The company achieved a net profit after tax of DKK 5.4 million (€723,660), a year-on-year increase of +1.9% from DKK 5.3 million (€710,259).

Jobindex attributes most of the growth during the fourth quarter to the acquisition of Computer World/IDG Danmark in May 2013, a deal which facilitated Jobindex’s move into the media market and the expansion of its recruitment services. Excluding revenue derived from Computer World, Jobindex achieved revenue of DKK 33 million (€4.4 million), equating to year-on-year organic growth of +16%. 

On an annual basis, Jobindex achieved revenue growth of +19% to DKK 135 million (€18.1 million), up from DKK 113.3 million (€15.2 million) in 2012. The company’s net profit after tax, however, fell by -23% to DKK 18.4 million (€2.5 million), down from DKK 23.9 million (€3.2 million) last year. 

The number of job adverts posted online in January 2014 was +4% higher than the same month last year. The company predicts that the number of new job adverts in 2014 will be between +5% and +10% higher than in 2013.

The Danish online job market, according to Jobindex, was valued at DKK 230 million (€30.8 million) in 2013, a year-on-year drop of -3.4% compared with DKK 238 million (€31.9 million) in 2012. However, Jobindex expects that the economy and labour market will show improvement in 2014, with total revenue of DKK 240 million (€32.2 million).  

Jobindex claims that its market share grew from 41% in 2011, to 43% in 2012, and to 47% in 2013. The company’s market share is not expected to increase in 2014, with revenue derived from online job adverts forecast at DKK 115 million (€15.4 million). Revenue derived from other streams, such as job boards in Sweden and Norway, Computer World, and online recruitment services is expected to result in annual revenue for 2014 of DKK 160 million (€21.4 million), equating to year-on-year growth of +18.5%.

The company expects to incur increased costs during 2014, partly due to increased activity in the more labour intensive aspects of the company; such as CV matching and writing advertisements, which have significantly lower gross margins than online job advert revenue. Jobindex will also focus on investing in growing their future market share, developing new products, and enhancing cooperation between the different parts of the business. As a result, operating profit for the year is expected to fall by -11.8% to DKK 30 million (€4 million), from DKK 34 million (€4.6 million) last year.    

In trading today, the company’s share price fell by -3.1% to DKK 378 (€50.66), a decline of -9.9% compared with a year ago. Based on its current share price, the company has a market value of DKK 351 million (€47 million).   

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