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Sweden – NetJobs Q2 revenue declines while profits continue to slide

24 August 2018

Swedish job board NetJobs (NJOB: STO) reported revenue for the second quarter ending 30 June 2018 of SEK 9.2 million (€0.8 million), a decrease of 7% compared with the same period last year.

(SEK millions) Q2 2018 Q2 2017 Change Q2 2018 (€ millions)
Revenue 9.2 9.9 -7% 0.8
Operating Profit -2.1 -0.8 N/A 0.1
Profit After Tax -2.2 -0.8 N/A 0.2

The group also reported that the operating margin decreased to –22.8% during the second quarter.

CEO, Georg Tsaros commented, “Numbers speak an honest and fair language, but they do not always tell the whole story. The quarter has been disappointing, but I still dare say that we achieved a number of clear indications that we are on the right track. There are no guarantees, however, I guarantee our will, our efforts and our hard work.”

Tsaros added that NetJob's sales school has been implemented for better training and introduction for both existing and new employees.

“The completion of the technical platform and its launch during the second quarter, a project that weighed on the company for a long period, has been positively received by the market,” Tsaros said. “During the quarter, a number of interesting potential partnerships have also begun to be evaluated, each of which can enable a stronger product offering in the future.”

During the months of May and June, Netjob's Group launched a new design on all of its job sites in Sweden and Germany. The new layout also included the subsidiary Onrec's sites. 

Revenue broken down by division was as follows.

(SEK millions) Q2 2018 Q2 2017 Change Q2 2018 (€ millions)
Sweden 7.1 6.6 7% 0.6
Germany 2.0 3.2 -36% 0.1
Techjobs 0 0 N/A 0
Other 0.0 0.0 -11% 0

“In conclusion, I can say that we are at a stage where our focus areas and priorities have never been clearer,” Tsaros said. “Optimising sales force is an ongoing project, but the pursuit of a minimum level of security is something we are on a very good path to achieve. Optimising the cost base, which took place in the first quarter and which intensified during the second quarter, where significant progress was noted, will only yield the highest results in the third quarter.”

The company last traded on 21 August 2018, before the publication of its second quarter financial results. NetJobs traded at SEK 0.835 (€0.079), no change on the day and 71.46% above the 52 week low of SEK 0.487 (€0.046) set on 20 November 2017. Based on its current share price the company has a market value of SEK 17.32 million (€1.6 million).

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