May 6, 2016 – Monster Worldwide, Inc./(NYSE:MWW) posted first quarter revenues of $157.8 million, a decrease of seven percent in constant currency and nine percent at actual rates compared to last year’s first quarter.
Revenue from the company’s careers North America operations decreased 11 percent year-over-year, to $109.2 million while revenue from careers international came in flat at $48.6 million year-over-year at constant currency and decreased four percent at actual rates.
The Weston, MA-based company reported first quarter net income of $1.8 million, or seven cents per share (adjusted for non-recurring costs and stock option expense). The results matched Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was also for earnings of seven cents per share.
“While results in our North America business in the first quarter were mixed, we have experienced improving trends in our European business for the third consecutive quarter,” said Tim Yates, who serves Monster as its CEO and chief financial officer. “Additionally, we repurchased both equity and a portion of the convertible notes outstanding, demonstrating our confidence in our business and starting in the second quarter, as previously noted, we will be increasing investments in a couple of targeted product and marketing areas designed to accelerate top line growth.” Overall, he said, he was pleased with Monster’s earnings performance and cash generation during the quarter, and he remains focused on one thing: revenue growth.
In the first quarter, Monster repurchased 1.1 million shares of the company’s common stock at a value of $3 million. Last October, Monster’s board of directors authorized a $75 million share repurchase program over a period of 24 months. During the first quarter of 2016, the board authorized the use of funds allocated to the share repurchase program for the repurchase of the company’s 3.5 percent convertible notes due in 2019. In March, the company repurchased $10 million in aggregate principal amount of the convertible notes for $9.5 million in cash, plus accrued interest.
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During the quarter, Monster renewed its alliance with Local Media Consortium (LMC) to distribute local recruitment content, job ads, career services and talent management solutions as pioneered by Monster through a growing nationwide alliance of local media outlets, including Cox Media Group, Digital First Media, Gatehouse Media, Journal Media Group, Lee Enterprises, and many others. The agreement, which represents 745 local papers and over 20 media companies, extends the original relationship forged in 2011 for an additional three years, and retains all current LMC / Monster newspaper alliance partners.
Also during the quarter, Monster formed a partnership with Jobaline, a mobile and bilingual cloud based recruiting solution and marketplace for hourly jobs. The two companies offer large employers extended reach to find hourly workers across the U.S. The hourly jobs created on Jobaline will be automatically distributed across Monster’s network, offering large employers a pay-per-results solution where they pay only for local candidates that live within the required distance or commute time from the job and that pass the screening criteria defined by the recruiting manager. “It’s a new concept that’s gaining traction,” said Hunt Scanlon Media managing editor Dale Zupsansky.
The company’s shares closed at $3.06 yesterday. A year ago, they were trading at $5.73.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media