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China – 51Job achieves record revenue and net income in Q4

21 February 2014

Chinese job board and HR provider 51job Inc. (JOBS: NSQ) reported revenue of RMB 472.4 million (USD 77.2 million) for the fourth quarter ending 31 December 2013, a year-on-year increase of +18.9% from RMB 397.3 million (USD 65 million) in Q4 2012.

The company achieved a gross profit of RMB 323.3 million (USD 52.9 million), up by +20.3% from RMB 268.7 million (USD 43.9 million) last year. Net income for the period grew +27.1% to RMB 155.2 million (USD 25.4 million) from RMB 122.1 million (USD 20 million) a year ago.

On an annual basis, 51job reported revenue of RMB 1.7 billion (USD 278 million) in 2013, equating to year-on-year growth of +13.3% from RMB 1.5 billion (USD 245.3 million) in 2012. The company achieved a gross profit of RMB 1.2 billion (USD 196.2 million), rising by +20% from RMB 1 billion (USD 163.5 million) a year ago. Net income for the period increased by +6.5% to RMB 500.6 million (USD 81.9 million), up from RMB 470.1 million (USD 76.9 million) last year. 

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said: “We are pleased to close 2013 with record revenues and net income in the fourth quarter. Through successful strategy execution and increased sales and marketing investments, which we expect will generate even greater returns in the future, we accelerated the growth of our online business and significantly expanded our customer base over the past year.  We expect to carry solid momentum into 2014 as we focus on efforts to further extend our market leadership in the HR services industry and strengthen our value proposition to employers in China.”

Revenue derived from online recruitment services for the fourth quarter of 2013 was RMB 289.2 million (USD 47.3 million), representing a +21.6% increase from RMB 237.9 million (USD 38.9 million) for the same quarter last year.  The growth was principally due to an increase in the number of unique employers using the company’s online recruitment services, which was partially offset by a decrease in average revenue per unique employer. 

On an annual basis, revenue from online recruitment services increased by +16.6% to RMB 1.1 billion (USD 179.9 million) from RMB 943.4 million (USD 154.3 million) last year. 

Print advertising revenues for the fourth quarter of 2013 decreased by -53.9% to RMB 5.8 million (USD 948,428) compared with RMB 12.7 million (USD 2.1 million) for the same quarter in 2012; primarily due to the ongoing business transition away from print advertising services. 

On an annual basis, revenue derived from print advertising fell by -51.6% to RMB 51 million (USD 8.3 million) from RMB 105.3 million (USD 17.2 million) a year ago.

Other human resource related revenues for the fourth quarter of 2013 increased by +20.8% to RMB 177.3 million (USD 29 million) from RMB 146.8 million (USD 24 million) in the same quarter of 2012; primarily due to greater customer adoption and usage of business process outsourcing and training services, as well as strong demand for seasonal campus recruitment services.

On an annual basis revenue from other human resources services increased by +16.8% to RMB 541.3 million (USD 88.5 million) up from RMB 463.5 million (USD 75.8 million).

In the fourth quarter, 51job made a cash payment of RMB 148.9 million (USD 24.3 million) to complete the purchase of approximately 6,120 square meters of office space in Beijing to house its local sales, customer service and operations staff.  The total purchase price for the premises was RMB 164.9 million (USD 27 million) and the transaction was funded from the company’s existing cash resources.

In trading today, the company’s share price rose by +1.4% to USD 83.69, an increase of +50.1% compared with a year ago. Based on its current share price, the company has a market value of USD 2.4 billion.  

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