Revenue rose 1.6% at Recruit Holdings Co. Ltd. in the company’s fiscal fourth quarter ended March 31. Growth in its HR technology segment, which includes Indeed and Glassdoor, was offset by revenue declines in the group’s media and solutions and staffing segments.
| (¥billions) | Q4 2019 | Q4 2018 | % change | Q4 2019 (US$millions) |
| Revenue | ¥589.7 | ¥580.3 | 1.6% | $5,539.7 |
| Profit for the period | ¥13.5 | ¥28.4 | 52.2% | $476.1 |
In the staffing segment, revenue fell 2.1% year over year; staffing segment revenue rose 7.7% in Japan operations but fell 9.8% in overseas operations, which the company attributed to the ongoing uncertain outlook of the global economy intensified by the global spread of Covid-19.
Recruit’s staffing operations in North America include Staffmark Group, The CSI Cos., Advantage Resourcing and Advantage xPO. Its European operations include USG Professionals and Start People. Australian operations include the Chandler Macleod Group and Peoplebank.
Revenue by segment
| (¥billions) | Q4 2019 | Q4 2018 | % change | Q4 2019 (US$millions) |
| HR Technology (Indeed and Glassdoor) | ¥106.3 | ¥90.0 | 18.1% | $997.1 |
| Media & Solutions | ¥192.8 | ¥193.7 | -0.4% | $1,682.7 |
| Staffing | ¥297.7 | ¥304.1 | -2.1% | $2,916.6 |
Revenue rose 18.1% in Recruit’s HR technology segment, driven primarily by increased sponsored job advertising which was supported by a generally favorable economic environment and tight labor market through February prior to the negative impact of the global spread of Covid-19. Recruiting solutions focused on sourcing and screening candidates as well as employer branding, through Indeed and Glassdoor, also contributed to year-over-year revenue growth.
Recruit’s media and solutions segment includes publishing operations in Japan; it’s a nonstaffing business line. Revenue in the segment edged down 0.4%, as enterprise clients in most industries turned cautious on hiring and reduced job advertising spend in response to the challenging business environment created by the spread of Covid-19.
For the full fiscal year 2019, revenue rose 3.8%.
Full-year results
| (¥billions) | FY 2019 | FY 2018 | % change | FY 2019 (US$millions) |
| Revenue | ¥2,399.4 | ¥2,310.7 | 3.8% | $22,242 |
| Operating income | ¥206.0 | ¥223.1 | -7.7% | $1,910 |
| Profit attributable to owners of the parent | ¥180 | ¥174 | 3.2% | $1,668 |
The company currently expects that the global spread of Covid-19 will have a significant impact on financial performance in the first quarter of 2020, and may continue to impact performance in the second quarter and beyond.
Tthe company said that beginning in March 2020, its revenue and profits across all three businesses were negatively affected and “may be further negatively impacted in future periods.”
Recruit also announced that it is not providing guidance for full-year 2020 at this time, but plans to provide consolidated financial guidance for full-year 2020 when the company is able to reasonably estimate the magnitude of the impact of Covid-19 on its business.
Share price and market cap
In trading today, Recruit Holdings shares closed up 0.67% at ¥3,596.00 (USD 33.40). Based on its current share price, the company has a market value of ¥6.06 trillion (USD 56.2 billion).