Daily NewsView All News
Recruitment and human resource services firm WDB Holdings (2475: JP) has downgraded its outlook for the second quarter of the year ending 30 September 2013. Operating revenue for the period had been predicted to reach JPY 12.6 billion (USD 126.3 million), the expectation now is that revenue will reach JPY 12.38 billion (USD 124.1 million), -1.8% lower than forecast.
Operating income for the period had been expected to reach JPY 1.06 billion (USD 10.6 million), but has now been downgraded by -24.7% to JPY 800 million (USD 8 million). Net income had been forecast to hit JPY 599 million (USD 6 million), but has now been revised to JPY 390 million (USD 3.9 million), -34.9% lower than forecast.
An explanation for the downgrade was not provided. Other Japanese recruitment firms have reported mixed results in recent months, highlighting a continuing tightness in the labour market.
Looking forward, the company’s full year forecast has also been downgraded following the announcement today. Operating revenue is now forecast for the year ending 31 March 2014, to reach JPY 26 billion (USD 260.7 million), JPY 340 million (USD 3.4 million) less than previously estimated and a drop of -1.3%.
Operating profit is expected to be -16.2% lower than predicted, falling to JPY 2 billion (USD 20 million) from an estimated JPY 2.4 billion (USD 24 million). Net income for the period is expected to reach JPY 1.1 billion (USD 11 million) by the end of the year, falling -19.5% short of the previously forecast JPY 1.4 billion (USD 14 million).
WDB Holdings is one of the largest staffing firms in Japan, according to research by Staffing Industry Analysts. Following the announcement, the company’s share price fell -0.89% to JPY 1,339 (USD 13.42), an increase of +98.2% compared with a year ago. Based on its current share price, the company has a market value of JPY 13.4 billion (USD 134.3 million).