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View All NewsJapan – Recruit Holdings Q2 revenue growth driven by HR Technology and Staffing
Japanese staffing giant Recruit Holdings (6098: JP) reported revenue today for the second quarter ended 30 September 2021. Revenue stood at JPY 707.1 billion (USD 6.15 billion), an increase of 23.2% when compared to the previous year.
The revenue increase was driven by growth in the HR Technology segment as well as Staffing. This was partially offset by decreased revenue in Media & Solutions. Excluding the revenue from the Rent Assistance Programme in Q2 2020, revenue in Media & Solutions increased year over year.
The Rent Assistance Programme was introduced by the Japanese government in May 2020 as part of a fiscal stimulus package in response to Covid-19.
| (JPY billions) | Q2 2021 | Q2 2020 | Change | Q2 2021 (USD millions) |
| Revenue | 701.1 | 569.1 | 23.2% | 6,158 |
| Adjusted EBITDA | 140.6 | 69.9 | 101.0% | 1,235 |
| Adjusted EBITDA Margin | 20.1% | 12.3% | - | - |
| Operating Income | 118.2 | 48.0 | 146.0% | 1,038 |
| Profit attributable to owners of the parent | 87.3 | 40.2 | 117.1% | 766 |
Revenue by segment
| (JPY billions) | Q2 2020 | Q2 2020 | Change | Q2 2021 (USD millions) |
| HR Technology | 214.4 | 103.4 | 107.3% | 1,883 |
| Media & Solutions | 157.8 | 172.8 | -8.7% | 1,386 |
| Staffing | 335.5 | 298.5 | 12.4% | 2,947 |
Revenue increased in the HR Technology segment as a continuation of elevated hiring activity globally led to increased demand for sponsored job advertising. Recruit owns a number of important online job advertising brands such as Indeed a Glassdoor.
Within Media & Solutions, revenue decreased 8.7%, however revenue increased 10.1% YoY excluding the Q2 2020 revenue from the Rent Assistance Program. Excluding the impact from the Rent Assistance program, revenue in Marketing Solutions increased, primarily due to
increased revenue from Housing & Real Estate and Beauty. In HR Solutions, revenue increased in the job advertising business and placement service.
Within Staffing, revenue growth was primarily driven by the increase in Europe, US, and Australia with additional growth from Japan. Japan saw the number of temporary staff on assignment increase year over year. Revenue in Europe, US, and Australia increased 18.9% year over year mainly due to continued demand for logistics roles to support e-commerce, particularly in Europe, as businesses continued to reopen and expand.
Revenue for the first half stood at JPY 1.04 trillion (USD 9.13 billion), up 30.8% over the previous year.
Looking ahead, revenue for the full year is expected to be in the range of JPY 2.70 trillion (USD 23.72 billion) to JPY 2.80 trillion (USD 24.59 billion).
Recruit Holdings Co Ltd (6098:TYO) set a new 52-week high during today's trading session when it reached JPY 8,180.00 (USD 71.85). Over this period, the share price is up 72.09%. Shares closed at JPY 8,071 (USD 70.90), up 1.23% on the day. The company has a market cap of JPY 13.52 trillion (USD 118.75 billion).