Zhaopin Q4 Profit Surges On Customer Growth, CJOL Acquisition

(RTTNews) - China-based online recruitment services provider Zhaopin Limited (ZPIN) on Tuesday reported a surge in profit for the fourth quarter from last year, reflecting double-digit growth in revenues.

This is the company's first earnings results as a public company. Shares of Zhaopin gained more than 9 percent in extended trades following the announcement of the results.

The Beijing-based company attributed the strong results to an increase in the number of unique customers it served, growth of its market share in key markets, and the acquisition of Jobs DB China Investments Limited as well as its consolidated affiliate Shenzhen Xijier Human Resources Co., Ltd, collectively known as CJOL.

The company's fourth-quarter income attributable to ordinary shareholders was RMB54.90 million, or $8.85 million, up from RMB5.47 million in the same period last year. Net income per ADS for the quarter was RMB1.12 or $0.18, up from RMB0.82 in the year-ago period.

The latest quarter's results were favorably impacted by a withholding tax reversal during the quarter of RMB5.5 million.

Adjusted income attributable to ordinary shareholders was RMB62.18 million, or $10.03 million, compared to RMB5.66 million in the year-ago period. Adjusted net income per ADS was $1.26, or $0.20 compared to RMB0.86 last year.

On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.97 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter grew 20 percent to RMB278.90 million, or $44.96 million, from RMB232.48 million in the same period last year. Analysts expected revenues of $257.41 million for the quarter.

Online recruitment services revenues for the quarter increased 17 percent to RMB241.4 million, primarily driven by growth in the number of unique customers using the company's online recruitment services. The company served 244,437 unique customers during the latest quarter, representing a 30.3 percent increase from last year.

Other service revenues for the quarter rose 23 percent from last year to RMB42.1 million.

Meanwhile, operating expenses increased 23 percent from the year-ago period to RMB191.7 million.

For fiscal 2014, Zhaopin's net income attributable to ordinary shareholders was RMB185.18 million or $29.85 million, compared to net loss of RMB109.20 million in the previous year. Earnings per ADS for the year were RMB3.94 or $0.64, compared to loss per ADS of RMB41.06 in the prior year.

Adjusted net income for the year was 215.31 million or $34.71 million, compared to adjusted net income of RMB10.12 million last year. Adjusted net income per ADS was RMB4.58 or $0.74, compared to RMB3.36 in the previous year.

Net revenues for the year increased 19 percent to RMB1.06 billion or $170.50 million from RMB866.86 million last year.

Street expected the company to earn $4.08 per share for the year on revenues of $997.17 million.

Looking ahead to the first quarter of fiscal 2015, Zhaopin forecasts revenues in a range of RMB270 million to RMB280 million, or $43.5 million to $45.1 million. Analysts expect revenues of $248.92 million for the quarter.

ZPIN closed Tuesday's regular trading session at $14.06, down $0.30 or 2.09 percent on a volume of 291,811 shares. However, in after-hours, the stock gained $1.34 or 9.53 percent to $15.40.