KUCHING: Malaysia continues to be Jobstreet Corporation Bhd’s (Jobstreet) largest market with 53 per cent revenue contribution to the group in 2013, as revenue from the other key markets expanded at a faster pace.
The regional job portal in its Annual Report 2013, said, despite uncertainties arising from the general elections in May 2013, Jobstreet’s revenue (excluding dividends, investment income and inter-company income) grew 3.5 per cent year-on-year (y-o-y).
Meanwhile, 2013 saw the rise in significant contributions from two countries which are its Singapore and Philippines businesses.
Jobstreet’s chairman Datuk Ali Abdul Kadir, and founder and chief executive officer Mark Chang Mun Kee said in the report, “With a fairly robust economy, our Singapore business performed remarkably well in 2013, with job posting revenue growing 27.5 per cent y-o-y.
“In terms of contribution, Singapore contributed 20 per cent of the group’s revenue in 2013, increasing from 18 per cent a year ago.”
Similarly, in the Philippines, aided by a fast growing economy, Jobstreet’s job posting revenue grew 28.6 per cent y-o-y and in terms of contribution, Philippines contributed 21 per cent of the group’s revenue in 2013.
“The thriving business process outsourcing (BPO) sector continued to create a lot of jobs and hiring activity which is good for our business. In 2013, Manila overtook Mumbai and climbed one step higher with a second ranking after Bangalore in the Top 100 Outsourcing Destinations, with Cebu holding its place on the eighth rung of the ladder,” Datuk Ali and Chang said.
Additionally, its Indonesian and Vietnamese businesses also showed positive prospects as the number of jobs posted on its Indonesian website has grown in 2013.
“As part of the planning for the proposed disposal to SEEK, on March 28, 2014, we have completed the acquisition of the remaining 40 per cent equity interest in PT JobStreet Indonesia. As at the year-end, we held 81 per cent equity interest in JS Vietnam Holdings Pte Ltd (JSVNH), an investment holding company incorporated in Singapore to facilitate the entry into Vietnam,” the chairman and CEO said, adding that these moves have opened up exciting prospects for the businesses in these two countries.
However, they noted that as with any entry into new markets, it will require some time to scale up business operations before it can make any meaningful contribution to the group.
Meanwhile, on its online job portal, Jobstreet reported that the number of active users registered with JobStreet.com across the region had surpassed the 13 million mark by the close of 2013 with strong user growth in Philippines and Indonesia.
“The group invested RM10.1 million in product and technology development during the year, an increase of 34 per cent from 2012.
“This continues to be a primary area of focus as investment and innovation in this area are critical to scale our business as well as provide the best possible service when benchmarked against our historical competitors and quickly emerging threats from social media,” Datuk Ali and Chang commented,
During the year, Jobstreet.com was also acquired by multinational company SEEK as a move by Jobstreet to expand its global reach. Going forward, Jobstreet said, the Company will continue to be listed and traded immediately after the sale of the online job portal business to SEEK is concluded.
“After the completion of the transaction, the company will be classified as an ‘affected listed issuer’ under Practice Note 17 of the Listing Requirements.
“We will need to formulate a plan to regularise the company’s financial condition within 12 months. The board will consider and evaluate suitable opportunities either by acquisitions or starting new businesses should they arise,” Datuk Ali and Chang said.