UK gross margin up 7% QoQ for Hudson
Hudson Global, Inc. has released its financial results for the second quarter ended 30th June 2017.
Revenue of $113.6m increased 0.5% from the second quarter of 2016 and increased 3.6% in constant currency.
Gross margin of $48.3m increased 3.2% from the second quarter of 2016 or 6.1% in constant currency.
Net income of $1.2m, or $0.04 per basic and diluted share, compared with net loss of $3.1m, or $0.09 per basic and diluted share, for the second quarter of 2016.
Adjusted EBITDA of $3.4m, compared with an adjusted EBITDA loss of $0.7m in the second quarter of 2016. Adjusted EBITDA in 2016 included $2.5m of compensation and legal fees related to an arbitration with the company's former chairman and chief executive officer.
"We delivered solid gross margin growth around the globe, with growth in nearly every country and notable improvement in the U.K. and China," said Stephen Nolan, chief executive officer at Hudson. "We are pleased to report positive adjusted EBITDA for the fourth consecutive quarter, as we continue to focus on our core markets and practices, delivering growth and positive cash from operations."
In the second quarter of 2017, Hudson Americas' gross margin increased 18% compared with the second quarter of 2016. RPO gross margin increased in the second quarter on continued strong demand across the client base. EBITDA was $0.3m in the second quarter, compared with an EBITDA loss of $0.2m a year ago. The region delivered adjusted EBITDA of $0.4m for the second quarter, compared with an adjusted EBITDA loss of $45 thousand a year ago, driven by gross margin growth.
Hudson Asia Pacific's gross margin increased 5% in constant currency in the second quarter of 2017 compared with the same period in 2016. Gross margin growth was led by Asia, up 12%, with a solid recovery in China, up 7%, while Hong Kong and Singapore also grew, up 30% and 11%, respectively, from a year ago. Australia/New Zealand continued to grow, up 2% in the quarter. EBITDA was $1.3m in the second quarter, compared with EBITDA of $0.6m a year ago. Asia Pacific delivered adjusted EBITDA of $1.9m, improving from adjusted EBITDA of $1.3m in the second quarter of 2016.
Hudson Europe's gross margin increased 6% in constant currency in the second quarter of 2017 from the second quarter of 2016. Growth was driven by Continental Europe, up 11%, with growth in Belgium, France, Spain, and Poland, on strong demand in permanent recruitment. In the U.K., gross margin declined 2% against prior year, but increased 7% sequentially from the first quarter of 2017. EBITDA was $2.6m in the second quarter, compared with EBITDA of $1.6m a year ago. Adjusted EBITDA was $3.1m in the second quarter of 2017, improving from $2.3m a year ago.
Photo courtesy of Shutterstock.com