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Recruit Holdings revenue rises 20% in fiscal Q1 amid USG acquisition and Indeed

August 10, 2017

Recruit Holdings Co. Ltd., the world’s fifth-largest staffing provider, reported revenue rose 19.6% its fiscal first quarter ended June 30. The company reported that continued revenue growth at Indeed contributed to total revenue growth as well as its acquisition of European staffing provider USG People.

The company reported revenue at Indeed was up 58.4% in US dollars for the year ending in December. Indeed is included in the firm’s HR Technology segment, where revenue rose 59.9% in the first quarter.

Recruit also reported staffing revenue rose 25.8% with Japan staffing revenue up 12.6% and staffing revenue in the rest of the world up 36.3%.

(¥millions) Q1 2017 Q1 2016 % change %  change constant currency Q1 2017 (US$millions)
Revenue ¥524,396 ¥438,580 19.6%   $4,667.1
Gross profit ¥241,635 ¥209,590 15.3%   $2,150.6
Gross margin 46.1% 47.8%      
Profit for the period ¥40,460 ¥34,950 15.8%   $360.1

Recruit’s operations include staffing and publishing in Japan. In North America, its operations include Staffmark and Atterro. European operations include USG People and Australian operations include Chandler Macleod.

The company also announced that it adopted International Financial Reporting Standards in place of Japanese GAAP as of this fiscal year.

Revenue by segment

(¥billions) Q1 2017 Q1 2016 % change Q1 2017 (US$billions)
HR Technology ¥46.4 ¥29.0 59.9% $0.41
Media & Solutions ¥165.2 ¥161.4 2.3% $1.47
Staffing ¥318.0 ¥252.7 25.8% $2.83


Recruit forecast revenue for the fiscal year ending March 2018 will be up 7.3% from the previous year to ¥2.08 trillion (US$18.55 billion). The forecast was unchanged from the company’s last earnings announcement.

Share price and market cap

Shares in Recruit closed up 1.10% to ¥1,930, according to Google Finance. The company had a market cap of ¥3.27 trillion.


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