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Mon Nov 8
TJOB topjobs.net plc 2Q00 Revenue Increases by 240% Over 2Q99 - PR Newswire
biz.yahoo.com
Monday November 8, 5:27 pm Eastern Time
Company Press Release
SOURCE: topjobs.net plc
topjobs.net plc 2Q00 Revenue Increases by 240% Over
2Q99
European Penetration Deepens Through New Acquisition and Joint Venture Agreement Site Traffic and Client Base Numbers Reach New Highs
MANCHESTER, England, Nov. 8 /PRNewswire/ -- topjobs.net plc (Nasdaq: TJOB - news) today announced its financial results for the second quarter ended September 30 for FY2000 (note 1) (see attached table). Revenue exceeded analyst expectations while operating loss remained in line with the Company's plan and analyst forecasts.
2Q00 revenue was 0.961 million pounds sterling ($1.58 million) for the second quarter, up from 0.28 million pounds during the comparable prior year period, representing a 240% increase. On a sequential basis, revenue grew by 31% (note 2) over the previous quarter. Operating loss for the second quarter of 3.0 million pounds ($4.97 million) compares to 1.1 million pounds during the corresponding period in 1998, reflecting continuing investment in building brand awareness and preparations for sustained growth in existing and new European country markets. Net loss per share was 0.38 pounds ($0.63) for 2Q00 versus 0.24 pounds for the same period last fiscal year (note 3).
According to Alan Clarke, Chief Financial Officer, ''Revenue has exceeded analyst expectations for every reporting period since our initial public offering in late April, providing confirmation that our business continues to grow. While we are pleased with our results, we believe that we have not yet begun to realize the revenue that will be generated from our ongoing investment in growing our business, and that more significant revenue increases will result. For example, our consolidated revenue figure for the second quarter includes just one calendar month of revenue from our new operation in Sweden. But, our
results for the quarter do include the costs associated with establishing our joint venture in Norway and preparations for
growing organically into The Netherlands.''
''We are continually reviewing and measuring what investments best drive our business and give us value for money. We have become more cost-effective, without any impact on our momentum and we have entered the third quarter in a strong financial position,'' said Clarke.
The Company reported that its customer base grew to 833 at the end of the second quarter from 454 three months earlier, representing a quarter on quarter increase of 83%. The customer base has grown by approximately 178% since the Company's initial public offering on April 28, 1999.
The topjobs.net web site continued to record a steady monthly increase in the total number of unique visitors. During the second quarter, the site recorded 1,932,759 unique visits, up 26% over the first quarter and 277% from a year earlier. A total of 3,461,574 unique visits were made by Management, Professional and Technical job seekers during the first six months of fiscal 2000.
Job seekers continued to register with Top Jobs on the Net in record numbers. A total of 338,627 job seekers had registered with Top Jobs on the Net through the end of the second quarter, representing a 752% increase over the comparable prior year period and a 44% increase since the end of the end of the first quarter.
Victor F. Kaminski, President and Chief Executive Officer, said, ''We are pleased with the strong revenue growth this quarter.
The continuing revenue and utilization trends validate our business model and demonstrate that we are making steady progress towards becoming the dominant provider of branded Internet recruitment solutions across Europe, our primary growth target market. The significant headway we made during the second quarter has provided us with a considerably stronger business platform for future growth into other key European markets.''
The Company also reported during the quarter that it had partnered with Schibsted ASA (SCH.OL), a leading Norwegian-based international media group to establish Top Jobs on the Net in Sweden and Norway, respectively through Schibsted's Aftonbladet Hierta AB and Verdens Gang AS. In Sweden, topjobs.net plc acquired a 75% equity interest in a leading Internet recruitment advertising business, with Aftonbladet holding the remaining 25% interest, and in Norway entered into a joint venture agreement with Verdens Gang, which topjobs.net plc will manage through its 51% equity stake.
Schibsted ASA reported US$878.4 million in sales in 1998, while Aftonbladet and Verdens Gang reported profit respectively of approximately US$12.74 and US$28.83 million. Aftonbladet has held the number one position in Sweden's newspaper publishing industry since 1996, presently with a 48% market share, and its newspaper web site is Europe's most visited, with approximately 120 million visitors annually. Verdens Gang is Norway's largest circulation daily newspaper, with an estimated 38% penetration in terms of readership which is reported at 1.4 million daily readers. Its online edition reports approximately 400,000 weekly readers, rendering it Norway's most visited newspaper web site.
Brian Mosley, Chief Operating Officer, said, ''We value strong international partners and believe that our partnership with
Schibsted ASA has conferred an immediate and significant competitive and strategic advantage, accelerating our entry into the Swedish and Norwegian country markets. A key component of both the Swedish and Norwegian transactions was the provision in each for a marketing agreement. Aftonbladet and Verdens Gang will provide approximately US$3.75 and US$3.85 million respectively in marketing and advertising support to our operation in each country through their various titles
over a three-year period. This will allow us to attack the market at a low cost, which we anticipate will force competitors, should they elect to defend their position, to channel a significant amount of their resources to defend against our presence, therefore stretching their funding.''
Kaminski concluded, ''We are in active discussions with other potential European partners, with the aim of making strategic transactions to extend our geographic reach, enhance our leading position within the European marketplace and serve the
interests of our shareholders. We hope to have some positive news on this front very shortly. We continue to increase the value of our brand, drive targeted traffic to our web sites, grow our customer base and increase revenue, and accordingly improve the overall financial performance of the Company. We remain confident about our performance relative to analyst expectations for the third quarter.''
About topjobs.net plc:
topjobs.net plc is the parent company of the Top Jobs on the Net topjobs.net group, with offices in the UK, Ireland, Switzerland, Poland, Australia, Thailand, Sweden, Norway, The Netherlands and the US. The Company's growth strategy is focused on strengthening existing country operations and expanding into other parts of Europe. The Top Jobs on the Net presence in the US is in selected markets only and on a test basis. There are no current plans for expansion into other US markets under the Company's existing arrangement. Customers using Top Jobs on the Net can efficiently create, modify, monitor and manage their own branded Internet recruitment advertising campaigns. Higher value contracts include TV
advertising. The Company's sales strategy emphasises serving large multinational companies through premium-serviced and priced, longer-term contracts. Investor information can be found at investor.topjobs.net or accessed through investor information at topjobs.net.
This release contains forward-looking statements. These forward-looking statements are not historical facts, but rather are
based on the Company's current expectations, estimates and projections about our industry, beliefs and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks,
uncertainties and other factors, some of which are beyond the Company's control, are difficult to predict and could cause actual
results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions you not to place undue reliance on these forward-looking statements, which reflect the management's view only as of the date of this release. The Company is not obliged to update these statements or publicly release the result of any revisions to them to reflect events or circumstances after the date of this release or to reflect occurrence of unanticipated events.
NOTES
1 topjobs.net plc fiscal year ends March 31
2 Percentage increase value for the quarter on quarter growth calculated
on GBP pounds figures
3 All US dollar amounts calculated on currency conversion exchange rate of
GBP1.00 pounds = US$1.6465
topjobs.net plc group Interim Unaudited Financial Statements
First quarter - 3 months
ended Sept 30, 1999 Exchange rate 1.6465
Income Statement 3 months 3 months 3 months
ended ended ended
Sept. 30, Sept. 30, Sept. 30,
1998 1999 1999
Unaudited Unaudited Unaudited
pounds Sterling pounds Sterling US Dollar
Revenue 282,550 961,089 1,582,433
Operating expenses:
Selling, general &
administration 743,512 2,622,676 4,318,236
Stock based compensation 0 64,818 106,723
Advertising 363,668 785,830 1,293,869
Commission 80,043 107,576 177,124
Depreciation &
amortization 180,102 397,990 655,291
Total operating expenses 1,367,325 3,978,890 6,551,243
Loss from operations (1,084,775) (3,017,801) (4,968,810)
Interest expense (60,178) (9,001) (14,820)
Interest income 0 193,472 318,552
Share of losses from
equity affiliate (75,750) (158,665) (261,242)
Minority interest 0 40,658 66,943
Other (expense)/income (7,878) (704,451) (1,159,879)
Net loss (1,228,581) (3,655,788) (6,019,256)
Loss per share - Basic (0.24) (0.38) (0.63)
Loss per share - Diluted (0.24) (0.38) (0.63)
Number of shares
used in calculation 5,200,000 9,511,910 9,511,910
Balance Sheet March 31, Sept. 30, Sept. 30,
1999 1999 1999
pounds Sterling pounds Sterling US Dollar
Audited Unaudited Unaudited
ASSETS
Current assets:
Cash 122,974 12,592,005 20,732,736
Accounts receivable 511,392 729,468 1,201,069
Retained interest in
factored receivables 154,888 450,143 741,160
Prepaid expenses and
other receivables 1,146,258 667,475 1,098,998
Total current assets 1,935,512 14,439,091 23,773,963
Property, plant &
equipment, net 617,102 704,795 1,160,445
Investment in
equity affiliate (200,035) (422,026) (694,866)
Goodwill 849,584 5,615,396 9,245,750
Total assets 3,202,163 20,337,256 33,485,292
LIABILITIES
Current liabilities:
Bank overdraft payable 1,758,587 60,373 99,404
Payables to related parties 5,046,981 224,285 369,285
Deferred revenue 1,264,265 1,826,802 3,007,830
Trade accounts payable 1,053,319 574,828 946,454
Accrued and
other liabilities 803,994 592,541 975,619
VAT & payroll tax payable 244,020 254,365 418,812
Current portion of
capital lease obligation 123,505 127,717 210,286
Total current liabilities 10,294,671 3,660,911 6,027,690
Capital lease obligation,
less current portion 99,757 33,156 54,591
Total liabilities 10,394,428 3,694,067 6,082,281
Minority interest (248,010) (235,219) (387,288)
STOCKHOLDERS (DEFICIT)/EQUITY
Ordinary shares 1,006 1,922 3,165
Preference shares 49,000 0 0
Additional paid in capital 176,467 29,862,732 49,168,988
Accumulated deficit (7,164,602) (13,051,151) (21,488,720)
Cumulative translation
adjustment (6,126) 64,905 106,866
Total stockholders'
(deficit)/equity (6,944,255) 16,878,408 27,790,299
Total liabilities and
stockholders'
deficit/equity 3,202,163 20,337,256 33,485,292
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