China’s 51job Q2 net profit down 37.8 pct on soft demand, costs
BEIJING (XFN-ASIA) – 51job Inc (NASDAQ: JOBS) said second quarter net profit fell 37.8 pct year-on-year to 2.8 mln usd on softening market demand for recruitment services and higher operating costs.
The Chinese human resources online services firm said second quarter revenue increased 4.2 pct to 31.9 mln usd while operating costs rose 16.8 pct to 12.3 mln.
Earnings per share stood at 0.10 usd.
Rick Yan, president and chief executive officer of 51job (nasdaq: JOBS – news – people ), said hiring by users of its service was sluggish in the second quarter, amid higher labor costs and slower economic growth.
‘We expect recruitment activity in the third quarter to further moderate as we believe regulations
instituted by the government for the Olympic Games will restrict normal business practices for companies in Beijing and indirectly affect businesses nationwide,’ Yan said.
The company has a third quarter revenue target of 29.9-31.3 mln usd.
(1 usd = 6.8 yuan)