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Sweden-based job board NetJobs Group AB (NJOB:STO) reported weaker sales than expected in the first quarter of the year as revenue fell -11% to €1.3 million (SEK 10.9 million). Sales dropped in Sweden, Norway and Finland while Germany posted strong growth figures.
The firm boosted marketing campaigns to improve performance, but the group still recorded losses in the quarter. The company posted an operating loss of €70,000 (SEK 0.6 million) compared to a profit of €0.5 million (SEK 3.9 million) a year ago. After tax, the firm recorded a loss of €93,000 (SEK 0.8 million) against a profit of €0.3 million (SEK 2.8 million) in the prior year.
CEO Hristos Kitsos revealed the firm invested a total of €0.2 million (SEK 1.7 million) in marketing campaigns during the quarter. “We have implemented many improvements to all our job sites, both in design and ease of use. We also expect that this will produce results in both growth and profitability in the future.”
The firm has been affected by strong competition, especially in the Swedish market, and uncertain labour market conditions. “In an economic downturn demand for personnel is likely to fall,” the company said, with this having a negative impact on the number of job advertisements.
The firm also made changes to its management in the quarter with the firm creating three new positions, including the post for COO which has been filled by Fredrik Åberg.
Founded in 2004, NetJobs runs 40 specialised career websites in Europe. The firm registers 80,000 unique visitors to its websites every week and has had over 19,000 customers since its inception. NetJobs has a market value of €5.1 million (SEK 44 million).