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US-based executive search firm Heidrick & Struggles International (HSII:NSQ) reported that consolidated net revenue dropped -3.3% to $103.0 million in the first quarter of the year, driven by a $8.1 million decline in Europe.
Overall, net revenue fell -29.8% in Europe to $19.0 million with the recruiter posting an operating loss of $3.6 million in the region. Meanwhile net revenue grew +9% in the Americas, and declined by nearly -4% in Asia Pacific.
“Despite continuing challenges in Europe, where first quarter results were negatively impacted by a long, slow economic recovery and higher than expected consultant turnover, we have seen encouraging results from a number of offices and industry practices in our Americas and Asia Pacific regions,” said L. Kevin Kelly, chief executive officer.
“In addition, we are also pleased with the early integration of Senn Delaney into Heidrick & Struggles.” Senn Delaney was acquired at the end of 2012.
“Expanding our service offerings to include culture shaping has strengthened our integrated leadership services platform and is a key differentiating feature for Heidrick & Struggles that has already been instrumental in several significant business wins,” said Mr Kelly.
Operating income was $0.4 million, down from $3.2 million in the prior year. The year-over-year decline reflects lower net revenue, particularly in Europe, and an increase in general and administrative expenses, partially offset by a decrease in salaries and employee benefits expense.
In the first quarter, the firm also reported a net loss of $1.2 million, compared to a net profit of $0.7 million a year ago. The company is now forecasting second-quarter net revenue of between $110 million and $120 million.
As of last trade on Thursday, the company’s share price was up +6.7% to $14.20, a decrease of -21% from a year ago. Based on this stock price, the firm has a market value of $240.37 million.
Heidrick & Struggles was recently ranked 71st in Staffing Industry Analysts’ ranking of largest global staffing firms.