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China – 51job revenues up due to online recruitment growth

09 August 2013

Chinese job board and HR provider 51job Inc. (JOBS: NSQ) reported increased revenue of +12.2% during the second quarter of 2013, up from RMB 360.4 million (USD 58.5 million) to RMB 404.4 million (USD 65.6 million) year-on-year.

Rick Yan, president and CEO of 51job, commented: “Building on the momentum of an active post-Chinese New Year period, market demand for our online recruitment services maintained a positive trend in the second quarter. Through strengthened sales and marketing efforts, we made further strides in expanding our corporate customer base, achieving +25% year-over-year growth in the number of unique online employers.”

“Recent feedback we have received from enterprises continues to be favourable regarding their hiring plans for white collar workers. We remain optimistic about market outlook, as we focus on strategy execution and capturing opportunities in the evolving HR services industry in China,” he added.

Online recruitment services revenues for the second quarter of 2013 were RMB 269.5 million (USD 43.7 million), a +14.3% increase from RMB 235.9 million (USD 38.3 million) for the same quarter last year. The growth was attributed to an increase in the number of unique employers using the Company's online recruitment services. This increase was partially offset by a decrease in average revenue per unique employer. Unique employers increased +25% to 231,011 in the second quarter of 2013, compared with 184,667 a year ago, driven by aggressive customer acquisition efforts and increased usage of online recruitment services by employers. However, average revenue per unique employer decreased -8.6% in the second quarter of 2013 due to a greater number of new customers and employers who purchased lower priced services. 

Other human resource related revenues for the second quarter of 2013 increased +20.8% to RMB 123.8 million (USD 20.1 million) from RMB 102.5 million (USD 16.6 million) in the same quarter of 2012 primarily due to greater customer adoption and usage of business process outsourcing and training services.

Gross profit for the second quarter of 2013 increased by +14.0% to RMB 286.0 million (USD 46.4 million) from RMB 250.8 million (USD 40.7 million) for the same quarter last year. Gross margin increased to 73.7% in the second quarter of 2013 compared with 72.6% a year ago. Net income for the second quarter of 2013 increased +4% to RMB 119.2 million (USD 19.3 million) from RMB 114.6 million (USD 18.6 million) a year ago.

Based on current market conditions, the Company's revenue target for the third quarter of 2013 is estimated to be between RMB 405 million to RMB 420 million (USD 65.7 million to USD 68.1 million).

There is expected to be significant year-over-year decrease in print advertising revenues as the Company transitions away from this business. Print advertising revenues for the second quarter of 2013 decreased -50.1% to RMB 11 million (USD 1.8 million) compared with RMB 22.1 million (USD 3.6 million) for the same quarter in 2012 primarily due to the on-going shift in demand away from print advertising services. 

In trading yesterday, the company’s share price closed +3.81% higher at USD 70.07, up +92.29% compared with a year ago. Based on its current share price the company has a market value of USD 2.02 billion. 

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