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View All NewsJapan – Recruit Holdings revenue rises 40% on back of strong HR Technology growth
Japanese staffing firm Recruit Holdings (6098: JP) reported revenue today for the first quarter ended 30 June 2021. Revenue stood at JPY 664.7 billion (USD 6.02 billion), an increase of 39.8% when compared to the previous year.
| (JPY millions) | Q1 2021 | Q1 2020 | Change | Q1 2021 (USD millions) |
| Revenue | 664,712 | 475,488 | 39.8% | 6,019.1 |
| Gross Profit | 372,679 | 237,499 | 56.9% | 3,374.7 |
| Gross Margin | 56.0% | 49.9% | ||
| Adjusted EBITDA | 125,677 | 53,431 | 135.2% | 1,138.0 |
| Adjusted EBITDA Margin | 18.9% | 11.2% | - | - |
| Operating Income | 104,717 | 26,671 | 292.6% | 948.3 |
| Profit attributable to owners of the parent | 77,864 | 22,323 | 248.8% | 705.1 |
Revenue, adjusted EBITDA, and adjusted EBITDA margin increased year over year mainly due to the performance of HR Technology.
Revenue by segment
| (JPY billions) | Q1 2021 | Q1 2020 | Change | Q1 2021 (USD billions) |
| HR Technology | 184.4 | 74.1 | 148.9% | 1.6 |
| Media and Solutions | 151.8 | 132.9 | 14.2% | 1.3 |
| Staffing | 335.1 | 274.2 | 22.2% | 3.0 |
| Total | 664.7 | 475.4 | 39.8% | 6.0 |
Within HR Technology, revenue increased as a broad surge in hiring activity led to increased demand for sponsored job advertising. Recruit operate the global Indeed job aggregator as well as a number of Japanese job boards.
In Media and Solutions, revenue growth was led by both Marketing Solutions and HR Solutions. In Marketing Solutions, Housing & Real Estate and Beauty contributed to the increase. In HR Solutions, the job advertising business improved slightly year over year.
Within the Staffing segment, revenue growth was led by Europe, US, and Australia with slower growth in Japan.
Looking ahead, the group forecasted revenue between JPY 2.6 and 2.7 trillion (USD 23.5 billion to 24.4 billion) for FY 2021 (ended March 2022).
“The company's business environment continues to evolve rapidly, as Covid-19 related restrictions in some countries have variously been relaxed and reintroduced making forecasting difficult,” the group stated. “The company's outlook remains cautious and FY2021 guidance is based on the assumption that long-term stagnation of economic activities caused by new large scale lockdowns and states of emergency will not occur during FY2021.”
Shares in Recruit Holdings last traded at JPY 5,772.00 (USD 52.27), down 0.36% on the day. The company has a market cap of JPY 9.86 trillion (USD 89.3 billion).