EQS-News

New Work SE reaffirms forecast amid a challenging market environment

EQS-News: New Work SE / Key word(s): Quarterly / Interim Statement New Work SE reaffirms forecast amid a challenging market environment (news with additional features) 07.05.2024 / 09:50 CET/CEST The issuer is solely responsible for the content of this announcement.

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New Work SE reaffirms forecast amid a challenging market environment
 

• kununu no. 1 for salary data in German-speaking countries
• Significant investments to reposition XING
• Restructuring largely completed

 
Hamburg, 7 May 2024 – New Work SE, the parent company of the brands XING and kununu, today presents its results for the first quarter of 2024. The figures portray a company continuing to make strides in implementing its new strategy amid a challenging economic environment.
 
Revenues in the HR Solutions & Talent Access segment fell by 6 per cent to €50.4 million (Q1 2023: €53.3 million). This is mainly due to the decline in job ad postings, in turn resulting from the German economy’s current recession. The B2C segment, as expected, fell by 18 per cent to €15.9 million (Q1 2023: €19.5 million). This is due to the company’s strategic shift and full focus on monetisation from its HR Solutions segment. Revenues in the smallest segment, B2B Marketing Solutions, declined by 36 per cent to €2.0 million (Q1 2023: €3.1 million). Consequently, total revenues were ten per cent lower than those of the previous year’s quarter (€68.2 million in Q1 2024 compared to €75.9 million in Q1 2023).
 
Despite the extremely difficult employment market environment, New Work SE continued to invest in implementing its strategy in the first quarter of this year. To this end, XING launched its largest-ever advertising campaign, and the brand is now the main sponsor of the recently founded Baller League to reach and appeal to new, younger target audiences. kununu, the leading platform for employer reviews in German-speaking countries, has continued to invest in its growth strategy with a regional campaign in the most populous federal state of North Rhine-Westphalia. These investments are tangible in the restructuring-cost-adjusted pro forma EBITDA, which, as a result, is down 50 per cent at €9 million compared to the previous year (Q1 2023: €17.9 million). Consequently, adjusted pro forma consolidated profit fell by 87 per cent to €1.1 million euros (Q1 2023: €8.4 million).