51job Q1 Profit Declines 10% On Higher Expenses; Provides Q2 Outlook
Chinese integrated human resource services company 51job, Inc. (JOBS: Quote) reported Thursday a profit for the first quarter that declined 10 percent from last year, reflecting revenue decline and lower operating margins amid higher expenses. The company also provided earnings and revenue outlook for the second quarter of fiscal 2012.
“Although the late Chinese New Year holiday meaningfully delayed the recruitment peak season and affected the amount of revenues we were able to capture in the first quarter, we have observed a solid increase in hiring activity and improved sentiment among employers in 2013,” President and CEO Rick Yan said in a statement.
The Shanghai, China-based company reported net income of 108.80 million yuan or $17.52 million for the first quarter, down 9.7 percent from 120.51 million yuan in the prior-year quarter. Earnings per share declined to 1.82 yuan or $0.29 from 2.03 yuan a year earlier.
On American Depository share basis, earnings increased to 3.64 yuan or $0.59 from 4.06 yuan last year.
Excluding items, adjusted net income for the quarter was 123.65 million yuan or $19.91 million, compared to 132.33 million yuan in the year-ago quarter. Adjusted earnings per share was 2.07 yuan or $0.33, compared to 2.23 yuan a year earlier.
On American Depository share basis, adjusted earnings was 4.14 yuan or $0.67, compared to 4.46 yuan last year.
Total revenues for the quarter edged down 0.1 percent to 380.38 million yuan or $61.24 million from 380.81 million yuan in the same quarter last year.
Online recruitment services revenues increased 8.3 percent, while average revenue per unique employer decreased 10.0 percent. From the year-ago quarter.
Other human resource related revenues grew 3.5 percent, while print advertising revenues dropped 48.1 percent from last year.
Operating margin contracted 430 basis points to 31.7 percent from last year as operating expenses as a percentage of net revenues increased 470 basis points, partially offset by gross margin improvement of 40 basis points.
The company noted that it discontinued the publication of 51job Weekly in Shenzhen in March 2013, but continued to maintain its facilities and all other operations in the city.
Looking ahead to the second quarter, the company projects adjusted earnings in a range of 2.20 to 2.35 yuan per share or $0.71 to $0.76 per ADS, on projected revenues between 395 million yuan and 410 million yuan, or $63.6 million and $66.0 million.
“For this year, we remain focused on expanding our customer base, deepening relationships with HR departments for cross-selling opportunities, and innovating new products to increase user engagement and effectiveness for our corporate clients and individuals alike,” Yan added.
JOBS closed Thursday’s regular trading session at $60.42, up $0.90 or 1.51% on a volume of 66,178 million shares. However, the stock lost a $2.42 or 4.01% in after-hours trading.