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Global job board Monster Worldwide Inc. (MWW: NYSE) released financial results for the second quarter of 2013, reporting falling revenue, falling operating income, and falling net income.
For the three months ending 30 June 2012, revenue fell to USD 200 million from USD 225 million, a drop of -11.1%. Operating income for the period fell by -43.6%; from USD 14.4 million to USD 8.1 million. Operating margin during the period fell to 4.1% from 6.4% a year ago. Net income also declined from USD 4.8 million in Q2 2012 to USD 3.4 million in Q2 2013, a drop of -29.2%.
Sal Iannuzzi; chairman, president, and CEO of Monster Worldwide said: “We are aggressively pursuing the execution of our business strategy and are also developing a number of new strategies to better position the Company for sustained, long-term revenue growth in the evolving job market. While the global economy has continued to put pressure on our business, with Europe being our weakest region, we were encouraged to see some stabilising trends in each of our major markets during the quarter.”
“Our second quarter results demonstrate our ability to control costs and protect profitability, even in a challenging market environment. And consistent with our objective to enhance shareholder returns, we successfully repurchased USD 23 million worth of our shares,” he added.
Revenue for North America Careers for the second quarter of 2013 was USD 109.7 million, compared with USD 116.2 million a year ago, a fall of -5.6%. Operating income, however, rose in the period by +29.5%; from USD 14.9 million in Q2 2012 to USD 19.3 million in Q2 2013. Operating margin rose from 12.8% in 2012 to 17.6% in 2013. North America is the biggest business segment for Monster Worldwide.
Revenue for International Careers was USD 72.1 million, down from USD 88.8 million for the same period last year, a fall of -18.8%. An operating loss of USD 6.1 million, during the second quarter of 2013, offset operating profit of USD 6.3 million, during the same period last year. Operating margin plummeted from +7.1% to -8.4% year-on-year. The remaining revenue of USD 18.2 million was generated through internet advertising and fees.
During Q2 2013, Monster repurchased 4.4 million share of its common stock at an average cost of USD 5.35, for a total of USD 23 million. The company’s corporate restructuring initiatives were substantially completed in the second quarter and the desired savings were achieved.
Following the release of the financial results, the company’s share price dropped -3.85% to USD 5.50, a fall of -9.84% compared with a year ago. Based on its share price, the company has a current market value of USD 621.69 million.