Niche recruitment specialist NetJobs Group has reported its tenth consecutive quarter of losses. Q2 2019 saw record losses. Revenue fell 42% to SEK5.4 million ($600,000 U.S.) — far below the SEK9.2 million ($954, 802 U.S.) it reached in Q2 2018.
The company’s German operations only managed to secure SEK791,000 — a 61% decrease — while its Swedish business brought in SEK4.5 million — representing a drop of 36%. EBITDA landed negative at -SEK2.3 million ($ 240,000 U.S.), which is at the same level as last year.
NetJobs is once again running out of cash. In April, it secured SEK3 million from investment company Rugosa, which valued the company at SEK15 million. By the end of Q2, it had only SEK300,000 in cash after a negative cash flow of SEK2.7 million in the quarter.
NetJobs is currently being run by temporary CEO Jonas Bertilsson but incoming CEO Niklas Eriksson will start to work on January 1. A new sales director Lukas Bacic will start his job next month. Both men have previously worked for the company. Eriksson previously served as the group’s CEO between 2013 and 2016, after a stint as a sales manager.
A revival in fortunes will probably depend on whether NetJobs can find new investors. The company has meanwhile widened its business scope. Although it still runs niche recruitment sites, it now calls itself an “HR tech company specialized in employer branding and talent sourcing.”