Stepstone Denmark turns profit under Jobindex

21 Feb 2017

Jobindex hopes to grow its share of total recruitment ad spend in Denmark from 62 percent in FY2016 to 64 percent in FY2017, the company said in its financial report for FY2016 released on Febr. 20.

Jobindex Group (JOBNDX) is quoted on Nasdaq First North (here), and has CEO Kaare Danielsen as the main owner, with 93 percent of the shares.

As reported earlier, Jobzonen, once a dominant job site in Denmark, closed down. Jobindex hopes to grab half of the 4-percent market share that Jobzonen held in 2016.

Jobindex estimates recruitment-ad spending amounted to DKK 350 million ($50 million U.S.) in 2016, up from DKK 333 million in 2015.

In FY2016 the turnover of the Jobindex Group was DKK 280 million, up 10 percent from DKK 254 million in FY2015. Profit before tax amounted to DKK 78 million, up 11.4 percent from DKK 70 million in FY2015.

In the report, Jobindex forecasted that LinkedIn (and some minor job sites) together may have 25 percent of the market by the end of FY2017, while the traditional competitors (North Media-owned Ofir, Jobfinder and Akademikarnas Jobbank) may share the rest among them.

Ads are the main revenue source of Jobindex, which also runs a loss-making recruitment service.
The recruitment products sold by Jobindex generated revenue of DKK 27 million, but made a loss of DKK 4 million.

Jobsafari, which runs job sites in Norway and Sweden, manage to grow revenue by 32 percent and sold ads worth DKK 10 million in FY2016. But, the loss came in at DKK 3 million.

Job site Stepstone.dk, which lost money for years, now shows positive results under the ownership of Jobindex. In FY2016, Stepstone generated revenue of DKK 17 million, and a profit of DKK 1.6 million.

In 2017, the jobs market should remain unchanged from 2016 – still untouched by the so-called Trump effect (uncertainty has translated into economic slowdown in many countries around the world), the company said.

In FY2017, the company expects turnover to grow to DKK 300 million, and the profit to grow to DKK 80 million. At Jobsafari it will again be tough for Jobindex to turn a profit.

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Lars Herlin

Lars Herlin is an AIM Group senior analyst for Europe, and our expert on Schibsted. He had a long career in journalism at Expressen, Svenska Dagbladet and VeckansAffärer, and served as managing editor and later managing director of Gotlands Allehanda.