JobStreet.com 2008 Financial Results

JobStreet.com just announced their 4th Quarter Results yesterday and also this means the entire 2008 results.

Operationally, JobStreet.com does fantastically! Am always amazed at how the firm is able to really leverage on it, and grow well.

Looking at Q4, revenue does drop marginally by 4% from RM23.149 Million to RM22.234 Million, due to the tough economic situation. This is based on y-o-y comparison. Looking in terms of Profits from Operating Activities, it went up from RM7.053 Million to RM8.110 Million. That's a 15.0% growth!

However, due to the bad economic situation, JobStreet.com decided to recognize some impairment in its investment worth RM5.363 Million. This would mean that moving forward, all these loses have been recognized.

For Profit before taxation, it drops from RM7.607 Million to RM3.001 Million, and Profit After tax drops from RM6.991 Million to RM2.163 Million.

However, if we look at the entire financial year of 2008, then things would be a lot more rosier.

Revenue went up from RM83.079 Million to RM102.331 Million, which is a 23.2% increase. Profit from Operating Activities went up from RM31.424 Million to RM45.203 Million, which is a huge increase of 43.8%. Profit Before Tax (after deducting the impairment loss and loss on disposal of an associate) grew from RM33.663 Million to RM39.324 Million, which is an increase of 22.7%. Profit After tax grew from RM30.283 Million to RM34.983 Million, which is a grew of 15.6%.

Looking at above, the way I see it, margin from operating activities does increase from 37.82% (Taking RM31.424 Mil divided by RM83.079 Mil) to 44.17% (Taking RM45.203 Mil divided by RM102.331 Mil). So, seems to me that there is a growth in productivity!

Above is what I interpret based on what I understood of the financial results. I am not a finance or accounting major and above are all analysis done in my personal capacity.

For all the detailed financial results, do go to here

For official JobStreet.com press release, it is quoted from Bernama

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JOBSTREET.COM REPORTS RM1.7 MILLION NET PROFIT FOR Q4 2008
Friday 20/02/2009

KUALA LUMPUR – 20 FEBRUARY 2009-- JobStreet Corporation Berhad (Main Board: "JOBST") Posted Its Quarterly Results For The Final Quarter Of 2008 With Revenue And Net Profit Attributable To Shareholders Declining 3.9% And 74.6% Respectively. The Significant Decline In Net Profit Was Primarily Attributed To A Provision For Impairment Loss On Investments Of RM 5.4 Million.

The decrease in revenue for the quarter was mainly resulting from lower sales from JobStreet SELECT (search & selection services) and JobStreet RESOURCE (contract staffing) by 53.8% and 16.2%, respectively. In addition, lower distribution income from the Group’s investment in quoted unit trusts also contributed to the decrease in revenue. The Group’s core products of JobStreet ESSENTIAL (job posting) and JobStreet IMPACT (career website management service) performed relatively well and registered growth in sales by 1.8% and 65.8% respectively during the quarter.

The global recession has affected investor sentiment worldwide and cause valuations on many stock exchanges to fall. In this respect, as discussed above, the Group booked a provision of RM5.4 million for impairment of its investments in quoted securities which significantly impacted the profitability for the quarter.

On a year to date basis, the Group managed to finish the year with a 13.6% improvement to its bottom line, as the Group’s core business operations in its principal markets in Malaysia, Singapore and Philippines continued to grow in 2008.

A quarter-on-quarter followed by a year-on-year comparison:-


Q4 2008RM'000 Q4 2007RM'000 %Increase/(Decrease)
Revenue 22,234 23,149 (3.9)
Profit before taxation 3,001 7,607 (60.5)
Profit after taxation and minority interests 1,703 6,709 (74.6)


Year Ended
31.12.2008RM'000 31.12.2007RM'000 % Increase/ (Decrease)
Revenue 102,331 83,079 23.2
Profit before taxation 39,324 33,663 16.8
Profit after taxation and minority interests 32,824 28,886 13.6

Mark Chang, CEO of JobStreet Corporation Berhad says “In view of the current market situation, we want to be prudent in recognizing some impairment on our quoted investments.” He added, “Many companies have started to cut down on their recruitment activities in response to the recession and our challenge will be to come up with innovative and effective recruitment solutions that best meet their needs during this difficult time.”

About JobStreet.com

JobStreet operates the JobStreet.com (www.jobstreet.com) online recruitment websites presently covering the employment markets in Malaysia, Singapore, Philippines, Indonesia, India, Bangladesh, Japan and Thailand. The Group currently services over 50,000 corporate customers and over 6 million jobseekers. JobStreet is listed on Main Board of Bursa Malaysia Securities (JOBST).


Source : JobStreet.com


FOR MORE INFORMATION CONTACT:
NAME : Simon Si
Head. Regional Communications
Tel: (03) 2176 0394
Fax: (03) 2698 7200
E-mail : simon@jobstreet.com
DATE OF RELEASE : 20 FEBRUARY 2009
RELEASED BY BERNAMA MEDIA RELATIONS & EVENT MANAGEMENT









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