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Sweden – NetJobs looking to expand despite lower revenue

08 November 2013

Sweden-based job board NetJobs Group AB (NJOB: STO) reported a -17% drop in revenue during the third quarter ending 30 September 2013, falling to SEK 7 million (€798,245) from SEK 8.5 million (€969,300) for the same period last year.

The company reported an operating loss of -SEK 1.2 million (€136,840), compared with an operating profit of SEK 1 million (€114,035) a year ago. NetJobs also reported a net loss after tax of –SEK 1.3 million (€148,245), compared with a net profit after tax of SEK 600,000 (€68,420) during Q3 2013.

Niklas Eriksson, CEO of NetJobs, commented: “Both revenue and earnings were negatively impacted by the holiday season in July. The quarter’s results were also burdened by a one-off cost of SEK 900,000 (€102,634) in bad debts. In both August and September the company showed a positive trend and a positive result for all companies within the Group. Underlying profitability is there stable, even at these revenue levels.”

“The office in Berlin continued to grow during the quarter, with revenue growing by +438% compared with the same period last year. We believe in having a physical presence in the markets in which we operate and in the next quarter we will look at opportunities to open additional sales offices in several markets which we currently operate from the Stockholm office.”

“During the next quarter we will also be launching Techjobs.com in several markets. Our vision is that we will have a leading position in the markets in which we operate. In future we will focus on our niche brands to become market leaders in their respective niches and further consolidate our brands which today hold leading positions,” Mr Eriksson added.

Revenue from Sweden is derived from two streams. The job board revenue stream fell by -45% during the third quarter to SEK 3.4 million (€387,720) from SEK 6.2 million (€707,020) last year. The newly acquired staffing company, Hotel & Restaurant Recruitment Sweden AB, contributed revenue of SEK 391,000 (€44,590). As the company was acquired in May 2013, there is no comparable year-on-year figure.

Revenue from Norwegian operations plummeted by -98% from SEK 613,000 (€69,905) in Q3 2012 to SEK 11,000 (€1,255) this year. No details were provided by NetJobs for the drastic fall in revenue. Finland also reported a year-on-year decline in revenue, falling by -37% to SEK 150,000 (€17,105), from SEK 240,000 (€27,370).

Germany was the only region to report growth during the third quarter when compared with the previous year. During Q3 2013 revenue rose to SEK 3.1 million (€353,510) from SEK 1.4 million (€159,650) last year, equating to growth of +122%.

Looking forward, Mr Eriksson continued: “We will in the fourth quarter launch our online career guide (karriärguiden.se) with a twist. In addition to jobs, we will also focus on employer branding and education. This means that we will be able to broaden our customer base and compete in two very interesting markets.”

“During the third quarter we have developed new core values to strengthen our identity internally. These are; think big, take responsibility, and work together. I look forward to working with all of the employees at NetJobs on this and focusing on our goals,” he concluded.

In trading today, the company’s share price reported no movement from SEK 1.55 (€0.18), a fall of -29.6% compared with a year ago. Based on its share price, the company has a market value of SEK 32.16 million (€3.7 million). 

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