Daily NewsView All News
Global job board Monster Worldwide Inc., (MWW: NYSE) reported revenue for the third quarter ending 30 September 2013 of USD 196.8 million, a fall of -10.9% compared with USD 220.8 million a year ago. The company reported operating income of USD 14.3 million, down by -20.6% from USD 18 million for the same period last year.
During the third quarter of 2012, Monster reported a loss of USD 235.4 million from discontinued operations. As a result, the company reported a net loss of USD 194.2 million for the third quarter last year. In comparison, the company achieved a net income of USD 11.3 million for Q3 2013.
Commenting on the results, Sal Iannuzzi, Chairman, President, and CEO of Monster, said: “Our third quarter results were encouraging, as we experienced stability in North America, protected profitability and continued executing on several important initiatives to enhance future growth. The stabilisation we experienced in North America in the second quarter continued and we are cautiously optimistic that this positive momentum will result in sequential revenue growth in North America in the fourth quarter of 2013.”
The company’s largest business segment, ‘Careers – North American’, reported revenue for the period of USD 109.6 million, a fall of -5.2% compared with USD 115.5 million last year.
‘Careers – International’ also reported lower revenue, year-on-year, dropping by -20.2% to USD 69.1 million from USD 86.6 million.
Revenue from Internet Advertising & Fees declined by -3.8% to USD 18.1 million during Q3 2013, compared with USD 18.8 million last year.
The company announced today that it had agreed to sell a 49.9% minority stake of JobKorea to private equity firm H&Q Korea. Monster will retain management control in JobKorea and will leverage H&Q’s expertise and extensive Asia Pacific regional network to enhance and grow the business.
Monster also announced an agreement to expand its current relationship with its joint venture partner in Finland. Alma Media is a leading media company focused on digital services and publishing in Finland, the Nordic countries, the Baltic countries, and Central Europe. Monster and Alma Media will each contribute several additional entities and businesses into the existing joint venture and form a significantly larger joint venture where Monster will have an initial equity ownership of 15%, with the opportunity to increase ownership to 20%. Combining these assets will create an entity with the #1 market share position in the region and allow Monster to leverage another significant strategic partner for expanding and competing in new markets across the region.
Mr Ianuzzi continued: “We are pleased to announce the sale of a minority stake in our South Korean business for USD 90 million, which demonstrates the underlying value of the Monster enterprise. We look forward to working with our partner, H&Q Korea, to grow this profitable business as well as to explore the potential expansion of this partnership throughout the Asia Pacific region. We are also excited to announce the expansion of our alliance with Alma Media in Eastern Europe and the Baltic region, which will enhance the profitability of these businesses and grow our market share position. Finally, consistent with our objective to enhance shareholder returns, we successfully repurchased USD 37 million worth of our shares in the quarter.”
Monster repurchased eight million shares of its common stock at an average price of USD 4.64 per share, for a total of USD 37.2 million. As of 30 September 2013, there was approximately USD 139.5 million remaining under the company’s previously announced USD 200 million share repurchase program. During the year to date, the company has repurchased 12 million shares, or 11% of its total shares outstanding.
In trading yesterday, following the release of their financial results, the company’s share price closed up by +15.9% at USD 5.10, a fall of -18.9% compared with last year. Based on its current share price, the company has a market value of USD 2.47 billion.