HeadHunter, the leading Russia-based recruitment vertical has yet to feel the impacts of the Covid-19 pandemic. In its financial results for the first quarter of 2020, the classified site recorded revenue of RUB 1.99 billion ($26 million U.S.), a 19% year-on-year increase.
Net income rose 73% to RUB 412 million ($5 million U.S.), driven largely by revenue growth. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were up 35% to RUB 1.04 billion ($13 million U.S.).
“Despite the current global slowdown in business activity, one of the most significant in modern history, I am very proud of how rapidly and efficiently HeadHunter has adapted to the evolving situation to continue providing consistent service to our customers,” said Mikhail Zhukov, CEO of HeadHunter Group PLC.
Revenue from CV database access and job postings showed the fastest growth, rising 22% year-on-year. However, job postings still generated the most revenue, bringing in 39% of HeadHunter’s total revenue.
Geographically-speaking, Moscow and Saint-Petersburg accounted for more than half of the company’s total revenue. However, other regions are increasingly becoming major revenue drivers, growing 44% year-on-year.
Marketing expenses were up 23% year-on-year to RUB 60 million ($1 million U.S.), largely due to increased online and TV advertising spend.
In March, HeadHunter announced a dividend of around $0.50 per share, representing about 75% of the company’s adjusted net income for FY2019. But in April the company abruptly reversed course, postponing the dividend until further notice. HeadHunter cited the impact of the Covid-19 pandemic on its business as the reason for the deferral.