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Japan's Recruit Holdings posts higher fiscal Q2 profit as HR tech revenue jumps

Japanese human resources firm Recruit Holdings Co. Ltd. reported a year-over-year increase in fiscal second-quarter profit as revenue at its HR technology segment jumped 56.4%.

Profit attributable to owners of the parent rose to ¥45.32 billion in the quarter that ended Sept. 30, under IFRS, from ¥41.85 billion in the year-ago period. On a per-share basis, the company earned ¥27.07, up from ¥25.00 a year earlier.

Adjusted earnings came in at ¥29.26 per share, up from ¥22.97 per share a year ago.

Fiscal second-quarter revenue climbed year over year to ¥577.87 billion from ¥538.70 billion, with gains recorded in all of Recruit's three business segments. The company, however, missed the S&P Global Market Intelligence consensus revenue estimate of ¥579.11 billion.

Revenue at the company's HR technology segment grew to ¥82.41 billion in the quarter from ¥52.71 billion a year earlier mainly due to higher sponsored job advertising revenue from new and existing clients at Indeed, an online job search engine, and the addition of Glassdoor Inc., which was acquired in May.

"Indeed's revenue growth remained strong against the backdrop of a favorable economic environment and strong labor market," Recruit said on its earnings report.

Recruit said exchange rate movements had a negative impact of ¥2.9 billion on its revenue during the quarter.

The company affirmed its previous guidance for fiscal 2018, expecting a full-year profit of ¥153 billion and revenue of ¥2.302 trillion.

As of Nov. 13, US$1 was equivalent to ¥114.01.