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Sweden – NetJobs posts lower revenue but plans for expansion

14 February 2014

Sweden-based online job board NetJobs (NJOB: STO) reported revenue of SEK 8.7 million (€988,840) for the fourth quarter ending 31 December 2013, a fall of -18% compared with SEK 10.5 million (€1.2 million) for the same period last year.

The company achieved an operating income of SEK 1.4 million (€159,124), a year-on-year increase of +149% from SEK 600,000 (€68,196) in Q4 2012. Profit after tax also recorded a significant year-on-year increase of +81%, up from SEK 600,000 (€68,196) last year to SEK 1.1 million (€125,026) this year.

During the fourth quarter NetJobs opened its first office in Norway and appointed Bredo Johansen to the position of Country Manager for Norway. The move was part of NetJobs’ growth strategy to create a physical presence in all of the markets in which it operates. 

On an annual basis, NetJobs reported revenue of SEK 35 million (€4 million), a year-on-year decrease of -35% compared with SEK 41.2 million (€4.7 million) in 2012. Following an operating profit of SEK 7.5 million (€852,448) in 2012, the company reported an operating loss of SEK 1.7 million (€193,222) in 2013. Similarly, following the company’s profit after tax of SEK 5.5 million (€625,129) in 2012, NetJobs reported a loss after tax of SEK 2.7 million (€306,881) in 2013.

Niklas Eriksson, CEO of NetJobs commented on the quarterly results: “The improvement in profitability is a direct result of the review of the company’s organisation and cost structure that took place in Q3. Despite the fallen revenue of -18% in the fourth quarter, we can show good profitability even at these revenue levels. A lower cost base and increased cost control are a natural stepping stone to focus on driving revenue growth in 2014. Growth will come from existing markets and TechJobs.com. In the long run we also see opportunities to drive global sales in TechJobs.com.”

During the fourth quarter, revenue from online activity in Sweden fell by -40% to SEK 4.2 million (€477,371), down from SEK 7 million (€795,618) the previous year. Revenue in Sweden is also derived from the company’s Hotel and Restaurant Recruitment subsidiary, which was acquired in May 2013. No year-on-year comparison is possible, but revenue during the fourth quarter was only SEK 322,000 (€36,598).  On an annual basis, Swedish revenue fell by -28% to SEK 19.8 million (€2.3 million), down from SEK 27.6 million (€3.1 million) in 2012.

The only region to report year-on-year revenue growth during the fourth quarter was Germany, which increased by +66% to SEK 3.8 million (€431,907) from SEK 2.3 million (€261,417) last year. Revenue from Finland remained unchanged at SEK 229,000 (€26,028), while Norwegian revenue fell by -87% to SEK 128,000 (€14,548).

Annually, German revenue again increased by +66% to SEK 12.7 million (€1.4 million), up from SEK 7.6 million (€863,814). In Finland, annual revenue fell by -55% to SEK 736,000 (€83,654) from SEK 1.6 million (€181,856), while Norwegian annual revenue plummeted by -84% to SEK 680,000 (€77,289), from SEK 4.3 million (€488,737) in 2012.    

NetJobs currently owns 35 niche job sites and five general job sites in Sweden, Norway, Finland, Denmark, and Germany.

“In 2014 we will be able to work in the Norwegian market with a local presence, a market that is expected to be worth approximately SEK 400 million (€45.5 million). In Q1 2014 we will be looking into opportunities to open at least one new local sales office in one of the countries in which we are currently engaged in sales from Sweden,” Mr Eriksson added.

In trading today, the company’s share price remained unchanged at SEK 1.80 (€0.20), a fall of -30% compared with the same period last year. Based on the current share price, the company has a market value of SEK 37.3 million (€4.2 million). 


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