China-based job board and HR resource services provider 51job Inc. (NSDQ: JOBS) reported net revenue increased by 13.2% in the first quarter ended 31 March 2021 when compared to the same period the year prior.

The group saw a boost in revenue from the ‘Other Human Resource related’ segment.

51job operates in two primary business segments: Online Recruitment Services and “Other HR”.

The company saw operating expenses for the first quarter of 2021 increase by 55.2%. General and administrative expenses for the first quarter of 2021 increased 5.4%.

Revenue by segment

51job said that while the company has observed improvements in market conditions and hiring activity in 2021, the slight year-over-year decline in Online Recruitment Services was primarily due to the calendar impact of the Chinese New Year holiday in mid-February, which resulted in a later start to the recruitment peak season in 2021 and affected the amount of revenues that could be recognised in the first quarter of this year. The company believes there will be continued recovery in its online recruitment business in 2021.

In the Other HR related segment, revenue growth was primarily driven by solid employer demand for training, placement and business process outsourcing services this year, as compared to a challenging environment and stringent travel and social restrictions imposed due to the Covid-19 pandemic in the first quarter of 2020.

Earlier this week, 51job Inc. announced that it has entered into a definitive agreement and plan of merger with Garnet Faith Limited to be taken private in a deal valued at approximately USD 5.7 billion.

51job also announced that subject to approval for sale by local government authorities, the company intends to purchase an office building in Shanghai, which will serve as its new corporate headquarters.

The company published its results today before the US markets opened. Yesterday, 51job shares closed at USD 77.90, up 0.06% on the day and 3.23% below its 52-week high of USD 80.50, set on 17 September 2020. The company has a market cap of USD 5.88 billion.