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Online recruitment firm JobStreet Corporation Bhd. (JOBST:KLS) posted a +7% rise in revenue which totalled MYR 36.4 million (USD 11.8 million) in the fourth quarter last year. Net profit jumped +109% to MYR 14.9 million (USD 4.8 million).
The company beat analysts’ expectations and the increase in revenue was mainly due to the strong sales of online job posting services. The reversal of an impairment loss on an investment in an associate amounting to MYR 4.1 million (USD 1.3 million) also had a positive impact on the firm’s profitability.
In a joint statement from Chairman, Datuk Ali Bin Abdul Kadir and CEO, Mark Chang Mun Kee, the company highlighted the threat to its business from social media. “While LinkedIn does not currently have a direct presence in our core markets except in Singapore, the risk of them entering into our markets is there. While that may heighten the level of competition directly, the bigger threat is that LinkedIn's products and platform may actually evolve into a form of substitution in the recruitment industry.”
Founded in 1995, JobStreet claims to be the leading job site in Malaysia (responsible for 60% of revenue). JobStreet also operates in India, Indonesia, Japan, Hong Kong, Philippines, Singapore, Thailand and more recently opened in Vietnam. The firm provides online recruitment and human resource management services.
The company’s share price closed today at MYR 2.550, a decline of -0.4% giving the company a market capitalisation of MYR 803.32 million (USD 259.2 million).