- B2B E-Recruiting segment grew by 40 per cent
- EBITDA increased 23 per cent to €75.2 million
- Change of name to New Work SE scheduled for second half of year
- XING SE Executive Board proposes an increased regular dividend and payment of a special dividend
Hamburg, 26 February 2019 – XING SE, operator of the leading online business network in German-speaking countries, has published its preliminary unaudited figures for the 2018 fiscal year. According to these figures, 2018 sustained its growth course with total revenues rising by 25 per cent to €235.1 million (FY 2017: €188.5 million). Following adjustment for the acquisition of InterNations and Prescreen, XING reported total growth of 21 per cent, with every segment of the business contributing to this figure.
EBITDA increased 23 per cent to €75.2 million
The B2C segment, which reports earnings from paid end-customer offerings, grew by 12 per cent with revenues of €99.9 million (€89.5 million). Following adjustment for acquisitions, this equates to an increase of 5 per cent. The B2B E-Recruiting segment was the largest source of revenue and main growth driver. XING’s innovative B2B solutions, which are increasingly in demand due to the battle to find and hire skilled workers in a jobseeker’s market, generated revenues of €108.7 million (FY 2017: €77.4 million) and growth of 40 per cent (adjusted: 39 per cent). The B2B Marketing Solutions (previously known as Advertising) & Events segment reported strong growth, with revenues climbing 22 per cent to €21.7 million (FY 2017: €17.9 million). XING SE’s EBITDA increased 23 per cent to €75.2 million (FY 2017: €61.3 million), while net profit rose 21 per cent to €31.0 million. Adjusted for one-time earn-out effects, net profit grew 29 per cent to €30.1 million.
During the period under review, the XING platform added 1.9 million new members, with total membership growing to 15.3 million as of the end of 2018, and around 1.03 million members opting for paid XING memberships. Including XING Events users, XING had 16.4 million users as of the end of the 2018 fiscal year. During the reporting period, the XING E-Recruiting segment acquired around 3,200 new corporate clients for its licence subscriptions, leading to a total of around 11,000 companies taking advantage of the XING platform’s modern recruiting channels as of the end of December 2018. In addition, about 11,000 companies posted job vacancies on www.xing.com/jobs. InterNations, the leading network and guide for expats, had 3.3 million members worldwide as of the end of the previous year (an increase of 16%), including 135,000 paying members (an increase of 9%). kununu, the leading employer review platform in German-speaking countries, increased the number of hosted reviews to 3.2 million. Applicant tracking software (ATS) provider Prescreen also saw its corporate customer base grow strongly and pass the 1,000-client mark.
Change of name to New Work SE scheduled for second half of year
Thomas Vollmoeller, CEO at XING SE, said: “We’re extremely happy with the results for the 2018 fiscal year. We’re seeing sustained growth across the board, with our core business and subsidiaries reporting excellent figures. We’re also seeing strong user growth on every platform, with more and more customers signing up for the many services we have to offer. The tectonic changes taking place on the labour market are becoming increasingly tangible, and our New Work offerings are geared towards helping members master these changes.
”In February 2019, XING SE announced plans to change its name to New Work SE. The Executive Board and Supervisory Board already agreed on this move in 2018, which is subject to shareholder approval at the Annual General Meeting at the beginning of June 2019. This planned name change serves to reflect the company’s long-standing commitment to a vision revolving around a better, more human workplace. To this end, XING SE organises the leading annual event on the future of work in German-speaking countries, the New Work Experience (NWX) held at the Elbphilharmonie in Hamburg. In addition, XING offers customers a wide range of products and services to help them work in new ways that fit in with their lifestyle. The existing and well-known product brands, XING, kununu, InterNations and Prescreen, will remain in place after XING SE is renamed New Work SE, meaning that there will be no change for members, users and corporate clients.
A number of new products and services released over the course of the previous year also contribute to XING SE’s New Work positioning. One such example is the development of XING’s new brand, HalloFreelancer, which enables freelancers – a growing sector of the labour market – to promote themselves to companies and bid for projects put out to tender, while companies can find the experts they need to handle their projects.
The lack of skilled workers on the German-speaking labour market is becoming an increasing problem, which is why XING has extended its E-Recruiting portfolio to include an integrated applicant tracking system with direct access to more than 15 million candidates. This helps companies reduce their time to hire significantly, in turn cutting costs and boosting innovation levels. Conversely, XING members benefit from a wide range of job vacancies they can filter and apply for based on their personal needs and way of life.
XING SE Executive Board proposes an increased regular dividend and payment of a special dividend
On the basis in light of the company’s preliminary unaudited figures for the 2018 fiscal year the Executive Board of Hamburg-based XING SE yesterday resolved to put forward a proposal to the Supervisory Board to increase the regular dividend by 27 percent from EUR 1.68 per share to EUR 2.14 per share. The Executive Board also resolved to propose to the supervisory board an additional special dividend distribution of EUR 3.56 per share. XING's liquid assets of EUR 82.5 million as of the end of 2018 and its cash-generative business model enable it to pay out a special dividend without compromising its continued growth strategy. After approval of the audited consolidated financial statements by the Supervisory Board, the dividend distribution proposal is to be presented to the Annual General Meeting for resolution. Subject to approval by the Supervisory Board at its plenary meeting to be held on 21 March 2019, and the respective shareholder approval at the Annual General Meeting to be held on 6 June 2019, the total dividend payment will amount to around EUR 32.0 million.
The leading online business network in German-speaking countries accompanies its members through the sweeping changes taking place in the world of work. Against the backdrop of skills shortages, digitalisation and a shift in values, XING supports more than 15 million members in reconciling work and private life as seamlessly as possible. Members can use XING Jobs to look for vacancies to suit their individual needs, stay up to date with news on XING, join discussions, and find out about the changes and trends in the new world of work on nwx.xing.com. At the beginning of 2013, XING strengthened its position as a market leader in social recruiting by acquiring kununu, the market-leading platform for employer ratings in German-speaking countries. XING was established in 2003 and has been listed on the stock exchange since 2006. It has been listed in the TecDAX since September 2011. XING members interact in around 90,000 groups or network in person at one of over 130,000 professional events each year. XING has offices in Hamburg, Munich, Barcelona, Valencia, Porto, Vienna, and Zurich. Visit www.xing.com for further details.