PEKING (dpa-AFX) - Chinese integrated human resource services company 51job, Inc. (JOBS) reported a profit for the first quarter that increased from last year, reflecting improved margins and strong double-digit revenue growth. The company also provided earnings and revenue outlook for the second quarter of fiscal 2012.
'We are pleased to start off the year with solid financial results driven by healthy employer demand for our online and other HR services in the first quarter. Although concerns about macroeconomic conditions continue to weigh on enterprises in China, we made steady progress in expanding our customer base and geographic reach,' President and CEO Rick Yan said in a statement.
The Shanghai, China-based company reported net income of 120.5 million yuan or $19.1 million for the first quarter, higher than 91.6 million yuan in the prior-year quarter. Earnings per share grew to 2.03 yuan or $0.32 from 1.55 yuan a year earlier.
On American Depository share basis, earnings increased to 4.06 yuan or $0.64 from 3.10 yuan last year.
Excluding items, adjusted net income for the quarter increased to 132.3 million yuan or $21.0 million from 101.2 million yuan in the year-ago quarter. Adjusted earnings per share grew to 2.23 yuan or $0.35 from 1.71 yuan a year earlier.
On American Depository share basis, adjusted earnings increased to 4.46 yuan or $0.71 from 3.43 yuan last year.
Total revenues for the quarter increased 17.3 percent to 380.8 million yuan or $60.5 million from 324.5 million yuan in the same quarter last year.
Online recruitment services revenues increased 32.6 percent, and other human resource related revenues surged 59.0 percent, while print advertising revenues dropped 44.7 percent from last year.
Operating margin expanded 70 basis points to 36.0 percent from last year as gross margin improved 190 basis points, but operating expenses as a percentage of net revenues increased 130 basis points.
Looking ahead to the second quarter, the company projects adjusted earnings in a range of 1.90 to 2.05 yuan per share or $0.60 to $0.65 per ADS, on projected revenues between 360 million yuan and 375 million yuan, or $57.2 million and $59.5 million.
'Leveraging our competitive advantages in brand recognition, product effectiveness, service quality and execution capability, we believe that we are strongly positioned for profitable growth in 2012 and beyond,' Yan added.
JOBS closed Wednesday's regular trading session at $55.95, down $2.44 or 4.18% on a volume of 0.16 million shares. The stock lost a further $2.60 or 4.65% in after-hours trading.
Copyright RTT News/dpa-AFX
© 2012 AFX News
