Governance & Figures

Summary of Financial Results for Q3 FY2017

Results for Q3 FY2017

Consolidated Earnings Summary

In the third quarter of FY2017, revenue and EBITDA grew in all three segments. Revenue increased 13.6% year on year to 1,616.8 billion yen. EBITDA grew 13.8% to 215.6 billion yen. Strong revenue growth continued in Indeed, the highest growth business, with 60.6% increase year over year on a US Dollar basis.

Adjusted profit, which excludes extraordinary income and losses, was 122.7 billion yen, an increase of 9.6%, and Adjusted EPS grew 9.6% to 73.48 yen.

Financial Results Highlights by Segment

*Q3 three-month results (October-December)

HR Technology segment

Quarterly revenue in the HR technology segment was up 67.3% year on year to 57.4 billion yen. This growth was mainly due to a combination of new customer acquisition and expanding spend from existing customers, against the backdrop of a favorable economic environment and strong labor market. On a US dollar basis, year-on-year revenue growth was 62.9%. Quarterly segment EBITDA increased 51.3% year on year to 7.0 billion yen. To support future revenue growth, the HR Technology segment is strategically making investments, which fluctuates throughout the year, in its sales force, in marketing activities to acquire new users and customers, and in product enhancements to increase user and customer engagement. Indeed continued to achieve robust top line growth in the US, while revenue growth outside the US accelerated. As a result, it has reached a significant milestone of 250 million unique visitors in January 2018 with double digit growth year on year.

Media & Solutions segment

Quarterly revenue in the Media & Solutions segment was up 4.4% year on year to 166.7 billion yen mainly due to the Marketing Solutions' solid trend centering on the Beauty business, and due to the continued steady revenue growth in the HR Solutions. Quarterly EBITDA was up 1.2% year on year to 46.1 billion yen.

Staffing segment

Quarterly revenue of the Staffing segment was up 8.9% year on year to 336.2 billion yen, as a result of performance improvement in the Domestic Staffing under the solid market environment and a positive impact of foreign exchange rate on the Overseas Staffing revenue. EBITDA increased 25.0% year on year to 22.1 billion yen.

FY2017 Full-year Forecast

We made upward revision to our full-year forecast, reflecting the favorable nine-month results primarily driven by HR technology and Staffing, as well as the expected effects of tax reforms in the United States and European countries.

In the fourth quarter of FY2017, the Staffing segment will make investment to attract temporary workers under the favorable market environment. The HR Technology segment will continue to invest in its sales force, marketing and product enhancement. The Media & Solutions segment will also continue its marketing investment to attract users, in both Marketing Solutions and HR Solutions, for its sustainable growth.

Considering these factors, the revised revenue forecast is 2,166.0 billion yen, up 11.5%, the revised EBITDA forecast is 258.0 billion yen, an increase of 11.1%, and adjusted EPS was revised to 85.3 yen, up 6.5%.

Our dividend forecast remains unchanged. Following our dividend policy, which is payout ratio of approximately 30%, we will review the dividend forecast for FY2017 based on the full-year financial results.