Recruit Holdings, the owner of popular job sites Indeed and Glassdoor, announced on Thursday that its net profit for the first quarter has surged by 16% in comparison to the previous year, driven by an increase in revenue.
Strong Financial Performance
Net profit for the quarter ending in June reached an impressive 98.06 billion yen ($682.3 million), surpassing the estimate of 82.78 billion yen from a poll of analysts conducted by Quick. This significant growth demonstrates Recruit’s commitment to delivering excellent results.
Revenue Growth
Despite challenging market conditions, revenue recorded a steady growth rate of 0.9%, reaching 850.83 billion yen.
Positive Trends for Job Sites
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from operations related to Indeed and Glassdoor experienced a notable increase of 2.7%, totaling 98.1 billion yen. However, it is important to note that the revenue within this segment declined by 9.1% to 257.9 billion yen.
Promising Developments for Marketing and Human Resources Solutions
Recruit also witnessed a positive upswing in adjusted EBITDA for its marketing and human resources solutions, which rose by an impressive 36% to 42.5 billion yen.
Future Outlook
For the fiscal year ending in March, Recruit projects a slight decline in revenue of approximately 1.2%-2.7%, ranging between 1.676 trillion yen and 1.701 trillion yen. In contrast, adjusted EBITDA is expected to experience a healthy increase of 3.8%-11.5%, amounting to a range of 308.90 billion yen and 331.90 billion yen.
In conclusion, Recruit Holdings’ strong financial performance in the first quarter, along with positive growth in key sectors, indicates its ability to navigate the evolving market landscape successfully.