FOR its first half ended Jun 30, HRnetGroup posted a 22.8 per cent drop in net profit to S$21.7 million, on a constant currency basis, from S$28.3 million in the previous corresponding period.
The recruitment company noted an “extremely tough market” in the period, it said in a regulatory filing on Monday (Aug 12).
Earnings per share stood at 2.21 Singapore cents for the half year, down from 2.86 cents the previous year.
Revenue for H1 fell 2.1 per cent on a constant currency basis to S$285.9 million, from S$294.8 million the year before.
An interim dividend of 1.87 Singapore cents per share was declared for the half year, unchanged from the year before. The dividend will be paid on Sep 11, after the books are closed on Sep 4.
Revenue in Hong Kong and Indonesia was offset by declines in the other seven geographies that the company operates in.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Overall gross profit in Taiwan was stable as growth in the flexible staffing segment was offset by a decline in professional recruitment.
Singapore and mainland China were the hardest hit, with both the professional recruitment and flexible staffing businesses affected.
The company’s business in mainland China was predominantly in professional recruitment, and the economy did not recover as expected, it said.
HRnetGroup said market conditions look set to get even tougher in Q3 and Q4 as geopolitical tensions continue to intensify, and the trade war deteriorates into a cold war.
“We will do what is within our control, including keeping a tight rein on costs, upskilling our consultants to fight even better in this market, and raising delivery standards to lock in trust and confidence in our client relationships,” it said.
Shares of HRnetGroup closed flat at S$0.67 on Monday, before the results were released.
