Randstad profit hit by impairments, slower Europe
Randstad NV (RAND.AE) said Tuesday that fourth-quarter net profit fell 2% as impairments related to its employment website Monster and a slowdown in Europe offset strong growth in North America.
Net profit for the quarter was 194 million euros ($219.2 million) compared with EUR198 million in the year-earlier period, the Dutch human-resources company said. Randstad said net income was dragged down by impairments of EUR103 million related to Monster.
Excluding amortization and one-offs, net profit rose 4% to EUR233 million, the company said.
Randstad’s underlying earnings before interest, taxes and amortization was EUR309 million in the fourth quarter, up 5.1% on year. This was ahead of analysts’ expectations of EUR305 million, according to consensus based on estimates by 11 analysts compiled by the company.
Fourth-quarter revenue increased 2.1% to EUR6.10 billion from EUR5.98 billion, Randstad said. Analysts had forecast quarterly revenue of EUR6.12 billion, according to a consensus estimate provided by the company.
"Our revenue was stable organically year-on year in 4Q, reflecting robust sales growth in North America and rest of the world, but slowing activity in Europe in line with recent macro trends," Chief Executive Jacques van den Broek said.
The company raised its dividend to EUR3.38 a share, up 22% from last year. This includes a regular dividend of EUR2.27 a share and a special payout of EUR1.11 a share, Randstad said.
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