NEW WORK SE Q1 2024
Quarterly statement
January 1 to March 31, 2024
Consolidated key figures
Our sites
Unit | Q1 2024 | Q1 2023 | Q4 2023 | |
Revenues | in € million | 68.2 | 75.9 | 78.2 |
Pro forma revenues | in € million | 68.2 | 75.9 | 78.2 |
EBITDA | in € million | - 15.2 | 15.5 | 27.6 |
Pro forma EBITDA | in € million | 9.0 | 17.9 | 28.1 |
EBITDA margin | in % | - 22 | 20 | 35 |
Pro forma EBITDA margin | in % | 13 | 24 | 36 |
Net profit/loss for the period | in € million | - 16.9 | 7.0 | 6.3 |
Pro forma net profit/loss for the period | in € million | 1.1 | 8.4 | 6.4 |
Earnings per share (diluted) | in € | - 3.01 | 1.25 | 1.12 |
Pro forma earnings per share (diluted) | in € | 0.20 | 1.50 | 1.14 |
Cash flow from operations | in € million | 7.5 | 33.7 | 4.1 |
Equity | in € million | 128.3 | 153.2 | 145.2 |
XING platform members, D-A-CH | in million | 22.4 | 21.7 | 22.1 |
InterNations members | in million | 5.0 | 4.7 | 5.0 |
kununu workplace insights | in million | 11.2 | 8.8 | 10.3 |
B2B E-Recruiting customers, D-A-CH (subscriptions) | number | 14,254 | 14,493 | 14,255 |
Employees (FTE) | number | 1,460 | 1,894 | 1,542 |
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Contents | 3 | To our shareholders |
8 | Interim Group management | |
report | ||
17 | Interim consolidated | |
financial statements | ||
26 | Other information | |
1 | GERMANY | 3 | SPAIN |
Hamburg | Barcelona | ||
Berlin | Valencia | ||
Munich | 4 | PORTUGAL | |
AUSTRIA | |||
2 | Porto | ||
Vienna
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2
3
New Work SE Quarterly statement Q1 2024 | 2 |
To our shareholders | Interim Group management report | Interim consolidated financial statements | Other information |
01 | ||
To our | ||
shareholders | 4 | Company profile |
5 | Letter from the CEO | |
7 | The New Work SE shares | |
New Work SE Quarterly statement Q1 2024 | 3 |
To our shareholders | Interim Group management report |
Company profile
New Work SE is committed to a better world of work. With its strong brands such as XING, the largest talent pool, and kununu, the leading employer review platform in the D-A-CH region, it competes to be the most important recruiting partner in the German-speaking world. It brings candidates and companies together, enabling employees to lead more satisfying professional lives and helping businesses to achieve greater success by hiring the right talent. Listed since 2006, the Company is headquartered in Hamburg and employs a total of 1,460 staff at several locations including also Berlin, Vienna and Porto. For more information, see →www.new-work.se and →nwx.new-work.se
Interim consolidated financial statements | Other information |
HARBOUR FOR:
Strong brands
Four brands, one goal: to shape the future of work in the interests of people.
New Work SE Quarterly statement Q1 2024 | 4 |
To our shareholders | Interim Group management report | Interim consolidated financial statements | Other information |
Letter from the CEO
Petra von Strombeck
CEO of New Work SE
Dear shareholders,
The first quarter of the year was a period of reorganization for New Work SE.
Firstly, as announced, we introduced comprehensive restructuring measures. Making decisions like these is always extremely painful, no matter how necessary they may be. The good news, however, is that we had already achieved 85 percent of our intended staff reductions in terms of financial value by the end of the first quarter thanks to the very positive response to our voluntary redundancy scheme.
"In future, our B2B sales will focus on our strong brands XING and kununu."
We also began to allocate our sales team to our robust XING and kununu brands so that they can focus their efforts entirely on B2B sales of these products. While this process will still take several months to complete, it means that our sales units can operate even more effectively in the market and will further reinforce our position as a leading recruiting partner to HR departments.
Our XING brand is also in the middle of a transformation process. Of course, repositioning one of Germany's best- known online brands is an undertaking that cannot happen overnight and requires significant investment. We have, however, made these investments on a substantial scale to position XING as a network primarily focused on jobs and on reaching new target groups. At the end of last year, XING launched its biggest advertising campaign to date, with the heart of this campaign playing out during the first quarter. The brand is also actively seeking to reach new, younger target groups as the main sponsor of the newly founded Baller League.
kununu also worked vociferously and successfully to draw attention to its brand in Germany's most densely- populated state, North Rhine-Westphalia, during the first quarter to continue boosting the brand's growth. Thanks to the consistently encouraging development of its workplace insights, which grew by 28 percent to
11.2 million in the first quarter of 2024, kununu not only consolidated its market-leading position in German- speaking countries but is also the leader in the D-A-CH region based on salary data alone, with more than 4 mil- lion pieces of this data at its disposal. This rapid increase in data points provides a boost in terms of quantity, while the topicality of the data also ensures that the quality of these insights is up-to-date.
New Work SE Quarterly statement Q1 2024 | 5 |
To our shareholders | Interim Group management report | Interim consolidated financial statements | Other information |
The initiatives and activities outlined before are essential and represent the consistent implementation of our strategy. Unfortunately, the current macroeconomic situation is weighing on our financial key performance indicators instead of giving us a tailwind.
"Despite the challenging environment, we expect pro forma EBITDA of €55-65 million for the year as a whole."
Revenues in the HR Solutions & Talent Access segment fell by 6 percent to just over €50 million, primarily due to the decline in published job advertisements as a result of the current recession in the German economy but also as a result of gradually scaling down our Honeypot business. As expected, the B2C business contracted by 18 percent to just under €16 million due to our strategic shift to focusing entirely on monetizing via our HR solu- tions. Revenues in our smallest segment, B2B Marketing Solutions, dropped by 36 percent to €2.0 million. At €68 million, total revenues were 10 percent down on the prior-year quarter as expected.
Investments in marketing and in implementing our strategy in a difficult macroeconomic environment weighed on pro forma EBITDA adjusted for restructuring costs, which was 50 percent lower than the previous year's figure at €9 million, despite strict cost management applied in the past twelve months. As a result, adjusted pro forma consolidated net profit slumped by 87 percent to €1 million. Despite the challenging macroeconomic environment, we are confirming our adjusted forecast from January, and anticipate pro forma EBITDA of €55-65 million.
As you can see, the situation is a challenging one. As a Hamburg-based company, however, we know that it is particularly important to remain on course when facing strong headwinds - and that's exactly what we're doing. Although our transformation will take a little longer yet, we plan to emerge stronger from it and return to the same levels of growth we have enjoyed in the past.
Until then, thank you for placing your trust in us. We hope you will continue to give us your support.
Yours sincerely,
Petra von Strombeck
CEO
New Work SE Quarterly statement Q1 2024 | 6 |
To our shareholders | Interim Group management report | Interim consolidated financial statements | Other information |
The New Work SE shares
Basic data about the New Work shares | Key data on the share at a glance | |
Shareholder structure in March 2024 1
Number of shares | 5,620,435 |
Share capital in € | 5,620,435 |
Share type | Namensaktien |
IPO | 12/07/2006 |
Ticker | NWO |
WKN | NWRK01 |
ISIN | DE000NWRK013 |
Transparency level | Prime Standard |
Q1 2024 | Q1 2023 | |
XETRA closing price | ||
at the end of the period | €67.40 | €167.20 |
High | €75.20 | €184.40 |
Low | €51.90 | €149.20 |
Market capitalization | ||
at the end of the period | €379 million | €940 million |
Enterprise value at the end | ||
of the period | €269 million | €794 million |
Average trading volume per day |
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2 |
1 |
1 | - Burda Digital SE (DE) | 74.0% |
2 | - Invesco Ltd. (US) | 5.0% |
4 | - Other | 21.0% |
Sector | Software |
(XETRA & Tradegate) | 5,182 | 1,512 |
- based on the voting rights notifications sent to New Work SE
Share price performance vs. SDAX in the first three months of 2024 | Analyst recommendations in March 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
New Work SE | SDAX | Broker | Analyst | Recommendation | Price target | ||||||||||||||||||||||||||||||||||||||||||||||
140 | |||||||||||||||||||||||||||||||||||||||||||||||||||
120 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Berenberg Bank | Wolfgang Specht | Hold | €64 | ||||||||||||||||||||||||||||||||||||||||||||||||
2% | |||||||||||||||||||||||||||||||||||||||||||||||||||
100 | Deutsche Bank | Nizla Naizer | Hold | €70 | |||||||||||||||||||||||||||||||||||||||||||||||
- 14% | |||||||||||||||||||||||||||||||||||||||||||||||||||
80 | Hauck & Aufhäuser | Finn Kemper | Hold | €51 | |||||||||||||||||||||||||||||||||||||||||||||||
Warburg Research | Marius Fuhrberg | Hold | €68 | ||||||||||||||||||||||||||||||||||||||||||||||||
60 | |||||||||||||||||||||||||||||||||||||||||||||||||||
40 | |||||||||||||||||||||||||||||||||||||||||||||||||||
20 | |||||||||||||||||||||||||||||||||||||||||||||||||||
12/29/ | 01/04/ | 01/11/ | 01/18/ | 01/25/ | 02/01/ | 02/08/ | 02/15/ | 02/22/ | 02/29/ | 03/07/ | 03/14/ | 03/21/ | 03/28/ | ||||||||||||||||||||||||||||||||||||||
2023 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
New Work SE Quarterly statement Q1 2024 | 7 |
To our shareholders | Interim Group management report | Interim consolidated financial statements | Other information |
02 | |
Interim Group | |
management | 9 Net assets, financial position and results of operations of the Group |
report | 14 Segment performance |
for the period from | |
January 1 to March 31, 2024 | |
New Work SE Quarterly statement Q1 2024 | 8 |
To our shareholders | Interim Group management report | Interim consolidated financial statements | Other information |
Net assets, financial position and results of operations of the Group
Results of operations
Revenues in € million | EBITDA in € million | Consolidated net profit / loss in € million | ||
75.9
68.2
Q1 2023 | Q1 2024 |
Earnings per share in €
1.25 | 1.50 |
0.20 | |
Q1 2024 | |
Q1 2023 | Q1 2023 Q1 2024 |
- 3.01 |
15.5 | 17.9 |
9.0 | |
Q1 2024 | |
Q1 2023 | Q1 2023 Q1 2024 |
- 15.5 |
EBITDA | Pro forma EBITDA | |||
Revenues
In the first quarter of 2024, the Group's revenues decreased by 10 percent from €75.9 million to €68.2 mil- lion. It is a trend we expected and forecast. This reduction is primarily attributable to the decline in B2C revenues (- 18 percent) from Premium memberships as part of XING's realignment as well as a slight fall in revenues in the HR Solutions & Talent Access segment (- 6 percent).
7.0 | 8.4 |
1.1 | |
Q1 2024 | |
Q1 2023 | Q1 2023 Q1 2024 |
- 16.9 |
Net profit | Pro forma net profit | |||
The decline in the HR Solutions & Talent Access segment is mainly due to the persistently weak situation in the labor market since early 2023 as well as the discontinuation of Honeypot's products and services.
Earnings per share | Pro forma earnings per share | ||||||
New Work SE Quarterly statement Q1 2024 | 9 |
To our shareholders | Interim Group management report | Interim consolidated financial statements | Other information |
Other operating income
Other operating income rose sharply to €3.8 million during the period under review (Q1 2023: €0.7 million). This increase largely stems from the revaluation of the lease for the Company's headquarters (NEW WORK Harbour) as a result of the planned move to a new office building in Q4 2025.
Own work capitalized
Own work capitalized in the reporting period amounted to €5.1 million, which is considerably down on the previous year (Q1 2023: €7.5 million) This item is composed of personnel expenses, freelancer costs and ancillary costs. The decrease is mainly due to the year-on-year reduction of the workforce.
Personnel expenses
Personnel expenses increased significantly from €43.8 million to €57.5 million during the period under review. This rise is primarily attributable to the restructuring program unveiled on January 11, 2024, and the associated reduction in headcount. This resulted in a non-recurring increase in personnel expenses of €20.3 million. Excluding this non-recurring effect, personnel expenses were markedly lower in the first quarter of 2024 at €37.2 million due to the consistent cost management efforts begun in 2023 and weaker demand.
Marketing expenses
As communicated on January 11, 2024, marketing expenses increased by around 48 percent year-on-year to €19.4 million (Q1 2023: €13.1 million). As part of the repositioning of XING, we significantly increased our investments in branding and launched a larger TV campaign as well as additional online marketing activities.
kununu also rolled out a brand campaign on digital billboards and information screens across Germany's largest cities with the slogan "Erst kununu, dann bewerben" ("Check kununu first, then apply").
Other operating expenses
Other operating expenses rose from €11.5 million to €15.1 million during the period under review. This increase is due to €3.9 million in non-recurring expenses associated with the Group restructuring and the reduction in headcount announced in January in this context. Excluding this non-recurring effect, other operating expenses were actually slightly down on the previous year's figure of €11.4 million at €11.3 million.
The notes to the interim consolidated financial statements include a detailed table of all items reported under other operating expenses.
Impairment of financial assets and contract assets
Impairment losses (including reversals) on financial assets and contract assets include expenses for bad debts of €0.3 million (previous year: €0.4 million).
New Work SE Quarterly statement Q1 2024 | 10 |
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Disclaimer
New Work SE published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 05:44:06 UTC.
