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View All NewsJapan – Recruit Holdings fourth quarter revenue rises 23.9% as HR Technology leads growth
Japanese staffing giant Recruit Holdings (6098: JP) reported revenue today for the fourth quarter ended 31 March 2022 of JPY 759.7 billion (USD 5.87 billion), an increase of 23.9% when compared to the same period last year.
Revenue growth was led by the HR Technology business while revenue in Media & Solutions and Staffing also increased over the year.
| (JPY billions) | Q4 2021 | Q4 2020 | Change | Q4 2021 (USD millions) |
| Revenue | 759.7 | 613.1 | 23.9% | 5,873.4 |
| Adjusted EBITDA | 78.1 | 30.7 | 154.5% | 603.8 |
| Operating Income (Loss) | 45.3 | 19.5 | 132.5% | 350.2 |
| Profit for the Period | 48.4 | 13.8 | 250.5% | 374.2 |
During Q4 FY2021, economic activity continued to improve in the US and Europe resulting in increased hiring demand compared to the previous year. In Japan, although Covid-19 priority preventative measures were reintroduced from January to March 2022, economic activity was less impacted compared to the first half of FY2021 and hiring activity also gradually recovered compared to Q4 2020.
Revenue by segment
| (JPY billions) | Q4 2021 | Q4 2020 | Change | Q4 2021 (USD billions) |
| HR Technology | 236.6 | 131.1 | 80.4% | 1,829.4 |
| Media & Solutions | 180.3 | 179.3 | 0.6% | 1,394,1 |
| Staffing | 349.9 | 309.3 | 13.1% | 2,705.4 |
HR Technology consists of the operations of Indeed, Glassdoor and the other related businesses. Media & Solutions consists of two business operations, namely, Marketing Solutions and HR Solutions. Staffing consists of two business operations, which are Japan operations and Overseas operations.
Revenue in HR Technology increased as a prolonged period of elevated hiring activity globally led to increased demand for Indeed and Glassdoor's hiring products and services.
Revenue in Media & Solutions increased 0.6%. In Marketing Solutions, the revenue increase was led by Housing & Real Estate and Beauty, which together account for more than 50% of revenue. Revenue in Travel and Bridal also increased while revenue decreased in Dining due to the impact of the priority preventative measures imposed in certain areas of Japan from January to March 2022. In HR Solutions, revenue increased for both the job advertising business and the placement service.
In the Staffing segment, revenue increased due to an increase in revenue in both Japan and Europe, US and Australia.
The group also reported full year revenue as follows:
| (JPY billions) | FY 2020 | FY 2020 | Change | FY 2020 (USD billions) |
| Revenue | 2,871.7 | 2,269.3 | 26.5% | 22.2 |
| Adjusted EBITDA | 479.3 | 241.6 | 98.4% | 3.7 |
| Operating Income | 378.9 | 162.8 | 132.7% | 2.9 |
| Profit attributable to owners of the parent | 296.8 | 131.3 | 125.9% | 2.2 |
Looking ahead the group forecasted revenue of JPY 3.30 trillion (USD 25.51 billion) for the year ended 31 March 2023.
Shares in Recruit Holdings Co Ltd closed today at JPY 4,692.00 (USD 36.27) , up 2.99% on the day and 10.48% above the 52 week low of JPY 4,247.00 (USD 32.83) set on 11 May 2022. The company has a market cap of JPY 7.42 trillion (USD 57.36 billion).