05/14/2019 | Press release | Distributed by Public on 05/14/2019 00:14
Governance & Financials
TOKYO, JAPAN (May 14, 2019) - Recruit Holdings Co., Ltd. ('Recruit Holdings' or the 'Company') today announced financial results for the year ended March 31, 2019 (unaudited).
* Additional contents for FY2018 such as a presentation material will be uploaded around 18 o'clock on May 14.
FY2018 Consolidated Financial Highlights
Consolidated revenue +6.3%, EBITDA +13.5%, Adjusted EPS +23.5%
･Record-high revenue, EBITDA and Adjusted EPS
HR Technology segment continued its strong growth
･Revenue increased +54.0% in US dollar terms, assuming accounting policy change was applied in FY2017 (1)
Q4 FY2018 and FY2018 Segment Highlights
HR Technology Segment:
Media & Solutions Segment:
(1) The Group adopted IFRS 15 in the beginning FY2018, and changed its accounting policy. Revenues from certain customers which were previously presented on a gross basis with agent commissions classified in cost of sales are now presented on a net basis. FY2017 numbers assume the same accounting policy change was applied on a pro forma basis. The US dollar based revenue reporting represents the financial results of operating companies in this segment on a US dollar basis, which differ from the consolidated financial results of the Company.
(2) Internal data based on Google Analytics service, January 2019
(3) The treatment of cost allocations in intra-group transactions was changed at the beginning of FY2018, resulting in a positive impact to segment EBITDA. Please refer to Appendix of Financial Results Summary FY2018.
Consolidated Financial Guidance for FY2019
The Company is changing its prior guidance practices for FY2019 to reflect its rapidly changing technology business environment. The Company will no longer provide specific full year consolidated forecasts for revenue, EBITDA, operating income, profit attributable to owners of the parent, adjusted profit and adjusted EPS.
Below are consolidated financial guidance for FY2019:
- Revenue and adjusted EBITDA* for all three segments to increase
- Adjusted EBITDA* to be in the range of 310 billion yen to 330 billion yen
- Adjusted EPS to grow high single digits
The HR Technology segment revenue on a US dollar basis is expected to grow approximately 35% plus or minus a few percent. Adjusted EBITDA margin for the segment is expected to be approximately the same level as FY2018 plus or minus a few percent mainly due to continued investment in sales and marketing activities to acquire new individual users and enterprise clients and in product enhancements to increase user and client engagement.
The Media & Solutions segment revenue is expected to continue stable growth. Revenue for Marketing Solutions is expected to grow mid single digits, and revenue for HR Solutions is expected to grow low single digits. Adjusted EBITDA margin for the segment is expected to remain at a level similar to that of FY2018.
The Staffing segment revenue is expected to grow low single digits, comprised of an increase in both Japan and Overseas operations, and adjusted EBITDA margin is expected to improve slightly from FY2018 by improving operational productivity.
*Adjusted EBITDA = operating income + depreciation and amortization (excluding depreciation of right-of-use assets) ± other operating income/expenses
In preparing these materials, Recruit Holdings Co., Ltd. relies upon and assumes the accuracy and completeness of all available information. However, we make no representations or warranties of any kind, express or implied, about the completeness and accuracy. This presentation also contains forward-looking statements. Actual results, performance and achievements are subject to various risks and uncertainties. Accordingly, actual results may differ significantly from those expressed or implied by forward-looking statements. Readers are cautioned against placing undue reliance on forward-looking statements. Reported results should not be considered as an indication of future performance. Forward-looking statements in this press release are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.