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Sweden – Netjobs sales and profits fall, only Germany grows

19 August 2013

Swedish job board NetJobs Group AB (NJOB: STO) reported decreased sales and an operating loss for the second quarter of 2013, ending 30 June. Net sales fell -4% to SEK 9.5 million (€ 1.09 million) from SEK 9.9 million (€ 1.13 million) for the same period last year. Operating loss for the period was SEK 1.1 million (€126,623) compared with operating profit of SEK 2 million (€230,233) a year ago.

Earnings for the period were affected by increased advertising costs, particularly television advertising which cost SEK 800,000 (€92,089). NetJobs Group AB also acquired 100% of the shares of Hotel and Restaurant Recruitment Sweden AB. The acquisition was completed in May 2013 further impacting earnings for the second quarter.

Online recruitment in Sweden fell -15% to SEK 4.9 million (€564,046) during Q2 2013, from SEK 5.8 million (€667,647) during Q2 2012. Agency recruitment in Sweden, following the acquisition of Hotel and Restaurant Recruitment in May, was SEK 1.6 million (€184,178).

Online recruitment in Norway plummeted by -85%, with sales falling from SEK 1.5 million (€172,667) last year, to SEK 226,000 (€30,620) this year. Sales in Finland also dropped sharply, a decline of -74% to SEK 155,000 (€17,842) from SEK 588,000 (€67,686) a year ago.

The only region of sales growth was Germany, which increased +36% to SEK 2.7 million (€310,801) from SEK 1.97 million (€226,770) last year.

Niklas Eriksson, one of the founders of Hotel and Restaurant Recruitment Sweden, assumed the role of CEO of NetJobs following the acquisition. He commented: “I took over as CEO at the end of the second quarter with a clear vision for the future. We will be a leading player in the markets in which we operate. It’s a long way, but little improvements every day increase the chances.”   

“The quarter was marked by some staff turnover mainly in the Stockholm office. In connection with this, we have unusually high personnel costs relative to revenue. It is gratifying that the Berlin office continues to grow as planned,” he added.

Looking forward he concluded: “In order to meet the fierce competition in the market, a new strategy has been developed in sales, customer care, and customer service. Our long-term success is based on customer satisfaction and good customer relations. We enter into the third quarter with a new vision, strategy, and core values in order to achieve our growth targets next year.”

Following the release of the results on Friday, trading held steady at SEK 2.05 (€0.24), a fall of -31.67% compared with a year ago. Based on its current share price the company has a market value of SEK 41 million (€4.7 million). 

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