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Sweden - NetJobs makes loss but remains ambitious

15 August 2014

Sweden-based job board NetJobs AB (NJOB: STO) reported revenue of SEK 8.9 million (€969,120) for the second quarter ending 30th June 2014, a rise of +7% compared with SEK 8.4 million (€914,680) for the same period last year. The company did less badly than a year ago but still has an operating loss of SEK700,000 (€76,223), against SEK1,300,000 (€141,557) in Q2 2013.

During Q2 2014, revenue from online recruitment in Sweden fell by -12% to SEK 4.3 million (€468,230), down from SEK 4.8 million (€522,670) last year; revenue from Norway increased by +85% to SEK 419,000 (€45,625), from SEK 226,000 (€24,609) a year ago. Negative growth of -25% was reported in Finland where revenue fell to SEK 116,000 (€12,631), from SEK 156,000 (€16,987) last year. In Germany, revenue rose by +41% to SEK 3.8 million (€413,780), from SEK 2.7 million (€294,000) last year.

Niklas Eriksson, CEO of NetJobs, commented: “In summary, we have many exciting projects in the works….That we show a negative result for the quarter is primarily related to the start-up and development costs associated with our new initiatives in Norway and Techjobs.com.”

“Sales in Sweden during the quarter declined by -12%, which I'm not satisfied with. According to a new report from employment services, employment is expected to rise by 41,000 people in 2014 and the first half of 2015 in Sweden as it paves the way for increased growth in the Swedish market in future”.

According to Mr Eriksson it is gratifying that the German subsidiary continues to grow and the German market shows a sales increase of +41% over the previous year. He continues to see good growth potential in the German market, where the company have so far only scratched the surface. The German subsidiary represents 42% of sales, with an operating margin of 28%.

Netjobs have also initiated the sale of their Norwegian office, albeit at low levels and not at the rate they expected. Work on Techjobs.com is still on-going to finalize all of the functionality. During the quarter the company said it received many positive reactions from customers and has done business with both European and American companies.

“Supplying to customers in the form of more applications per ad increased during the quarter, which shows that the improvements made to produce results” Mr Eriksson added.

In Q1, the company announced that it intends to launch its core website Netjobs.com in several other international markets during Q2 2014. Following on from the international launch of Techjobs.com, NetJobs will target parts of the European and American markets where the company feels it will be able to complete with major international players. 

As of its last trade this morning, NetJobs Group AB (NJOB:STO) shares traded flat at SEK 1.14, 12.87% above the 52 week low of SEK 1.01 set on 19 May, 2014. Based on its current share price, the company has a market value of SEK 23.66 million (€2.6 million).

To read the full report, in Swedish, please click below:

Delrsrapport_jan_-_jun_2014_NetJobs_Group_AB - You do not have permission to view this object.


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