Randstad quarterly profit beats market forecasts
Q3 EBITA 196 million euros vs consensus 192 million
Company agrees to buy Zorgwerk in 323 million euro deal
Adds share move, analyst quote
By Michal Aleksandrowicz
Oct 22 (Reuters) -Randstad RAND.AS, the world's largest employment agency, on Tuesday reported quarterly profit slightly above expectations as trading conditions stabilizeddespite a challenging macroeconomic environment, sending its shares over 4% higher.
Globally, hiring has slowed as workers avoid the risk of switching jobs in an uncertain environment and employers are reluctant to recruit due to inflation and higher interest rates.
"We have continued to focus on execution and operational discipline, balancing field capacity with strategic investments," CEO Sander van‘t Noordende said in a statement.
Randstad also on Tuesday announced its intention to buy Zorgwerk, a Dutch digital healthcare marketplace, in a deal worth about 323 million euros.
Third-quarter earnings before interest, taxes and amortization (EBITA) before one-off items came in at 196 million euros ($212 million), slightly above the 192 million expected by analysts on average in a company-provided consensus.
Quarterly revenue of 6.02 billion dropped 5.9% organically, a little more than the 5.6% decrease expected by analysts.
Revenue per working day was down 9% in North America and 8%in Northern Europe in the third quarter. In Southern Europe, UK and Latin America, it was stable at -2%.
Oddo's analyst Konrad Zomer said in a research note that the results were "solid given the tough market circumstances", adding that the stabilizing conditions mentioned by Randstad were "a positive surprise."
Asked about the upcoming U.S. election, van‘t Noordende told Reuters: "getting the elections behind us is the most important thing", as Randstad's clients will benefit from clarity about the economic climate and "start adjusting their strategies."
Uncertainty around the election and high interest rates have made clients hesitant about investing in infrastructure and hiring, he added.
($1 = 0.9242 euros)
Reporting by Michal Aleksandrowicz; Editing by Matt Scuffham
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