Randstad sleepwalks in the US
24 Oct 2017
The revenue of Amsterdam-based staffing company Randstad Holding, owner of jobs site Monster, rose by 9 percent in Q3 of FY2017 to €5.9 billion ($6.9 billion U.S.) from €5.3 billion ($6.2 billion U.S.) in Q3 of FY2016, according to a presentation by Jacques van den Broek, CEO of Randstad, earlier today.
The presentation included a detailed geographic breakdown of revenue earned around the globe, but the performance of Monster was not stripped out. Randstad acquired Monster Worldwide Inc. in 2016 for $429 million U.S..
In Q3, all revenue growth came from outside the North American business (including Canada and the U.S.). Revenue grew 11 percent in Europe, 1 percent in North America and 10 percent in the rest of the world.
Randstad Holding (code: RSH) is listed on the Frankfurt Stock Exchange.
Randstad’s EBITA (not EBITDA) rose 8 percent to €288 million from €277 million, but the EBITA margin dropped to 4.9 percent from 5.1 percent, Van den Broek said.
Randstad earns revenue in four divisions, namely staffing, in-house services, professionals and global businesses. The regional breakdown of total revenue confirmed that Europe is Randstad’s heartland.
This is how individual countries in Europe fared on revenue (with percentage growth from Q3 to Q3 in brackets):
The Netherlands (+1 percent), France (+14 percent), Germany (+10 percent), Belgium (+9 percent), Spain (+17 percent), Portugal (+6 percent), Italy (+27 percent), U.K. (+10 percent), Switzerland (+21 percent), Nordics (+12 percent) and Poland (+14 percent).
The U.S. business must have performed very badly because Van den Broek didn’t reveal a revenue growth number for the U.S.. He said in Canada revenue grew 6 percent and in North America (Canada plus U.S.) revenue grew 1 percent.
The number for Latin America caught the eye: revenue grew 19 percent in Q3 of FY2017 from Q3 of FY2016.
Van den Broek said Monster Worldwide implemented cost-cutting initiatives in the third quarter. Last year, it laid off 180 people in the U.S. (our report at the time). Furthermore, a new approach combining human and digital job search, called Human Forward, was implemented (we reported on it here). Randstad said it plans to accelerate the digitalization of RiseSmart.com, a career-coaching, and career-transition service provider, which was acquired in 2015.