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View All NewsJapan – Recruit Holdings fourth quarter revenue rises 9% but forecasting decline for FY2023
Japanese staffing giant Recruit Holdings (6098: JP) reported revenue today for the fourth quarter ended 31 March 2023 of JPY 827.7 billion (USD 6.08 billion), an increase of 9% when compared to the same period last year.
Revenue in HR Technology, Matching & Solutions and Staffing increased year over year.
| (JPY billions) | Q4 2022 | Q4 2021 | Change | Q4 2022 (USD millions) |
| Revenue | 827.7 | 759.7 | 9.0% | 6,082.6 |
| Adjusted EBITDA | 109.1 | 91.2 | 19.5% | 801.7 |
| Operating Income (Loss) | 19.4 | 45.3 | -57.1% | 142.5 |
| Profit for the Period | 22.3 | 48.4 | -54.2% | 163.8 |
Operating income for Q4 FY2022 decreased 57.1% year over year mainly due to restructuring charges of JPY 17.6 billion (USD million) related to a workforce reduction and a one-time charge of JPY 13.9 billion(USD 100 million) for impairment losses on right-of-use assets related to leased office space in HR Technology, an impairment loss mainly related to software of JPY 8.6 billion (USD 63 million) in Matching & Solutions, and an impairment loss mainly related to software of JPY 3.3 billion (USD 24 million) and an impairment loss on goodwill of JPY 4.4 billion in Staffing (USD 32 million).
Consolidated adjusted EBITDA margin for Q4 FY2022 increased year over year to 13.2%, consolidated adjusted EBITDA increased 19.5% year over year.
Beginning FY2022, the Media & Solutions segment has changed its name to Matching & Solutions.
Revenue by segment
| (JPY billions) | Q4 2022 | Q4 2021 | Change | Q4 2022 (USD billions) |
| HR Technology | 251.3 | 236.6 | 6.2% | 1.8 |
| Media & Solutions | 203.0 | 80.3 | 12.6% | 1.5 |
| Staffing | 383.6 | 349.9 | 9.6% | 2.8 |
The group also reported full year revenue as follows:
| (JPY billions) | FY 2022 | FY 2021 | Change | FY 2021 (USD billions) |
| Revenue | 3,429.5 | 2,871.7 | 19.4% | 25.1 |
| Adjusted EBITDA | 545.0 | 511.8 | 6.5% | 4.0 |
| Operating Income | 344.3 | 378.9 | -9.1% | 2.5 |
| Profit attributable to owners of the parent | 269.7 | 296.8 | -9.1% | 1.9 |
For FY2023, the company expects consolidated revenue and adjusted EBITDA to decrease year over year as the size of the HR Matching market is expected to contract due to a deteriorating economic environment in the US and Europe and a resulting slowdown of hiring activities.
However, since it is difficult to predict the scale and the duration of the market’s contraction and the effect that will have on the company’s financial performance, the company is not providing consolidated financial guidance for FY2023 at this time.
Recruit Holdings shares closed at JPY 3,876.00 (USD 28.47), up 0.49% on the day and 18.03% above the 52 week low of JPY 3,284.00 (USD 24.13) set on 16 March 2023. The company has a market cap of JPY 6.54 trillion (USD 48.04 billion).