51job.com (JOBS) exceeded expectations during its announcement of unaudited financial results for the second quarter ended June 30, 2005. Total revenues increased 26.2% over Q2 2004 to CNY147.4 million, higher than its guidance of CNY135 to CNY145 million.
Excluding the revenue contribution of the stationery business which the company ceased to actively operate since the fourth quarter of 2004, total revenues grew 29.2% in the second quarter of 2005 to CNY147.2 million compared with CNY114.0 million in the same quarter last year.
Net revenues, which reflect total revenues less business taxes and related surcharges, increased to CNY139.2 million in the second quarter of 2005 from CNY111.0 million in the same period last year.
Print advertising revenues for the second quarter of 2005 increased 22.4% to CNY90.5 million compared with CNY73.9 million for the same quarter in 2004. The revenue increase was primarily due to a greater number of recruitment advertisements placed in 51job Weekly (formerly translated as Career Post Weekly in English), which was offset by lower average revenue per page.
The estimated number of print advertising pages generated in the second quarter of 2005 increased to 3,191 compared with 2,234 estimated print advertising pages in the same quarter in 2004. Average revenue per page in the second quarter declined compared with the second quarter of 2004 as a result of increasing revenue contribution from the Company's lower priced cities.
Online recruitment services revenues for the second quarter of 2005 were CNY38.9 million, representing a 52.5% growth from CNY25.5 million for the same quarter last year. The increase was principally attributable to a higher number of customers using the Company's online recruitment services. Unique employers using online recruitment services increased to 31,098 in the second quarter of 2005, compared with 21,743 in the same period last year.
Executive search revenues for the second quarter of 2005 decreased 3.5% to CNY7.1 million from CNY7.3 million for the same quarter last year. For the second quarter of 2005, other human resource related revenues were CNY11.0 million, representing a 9.4% growth from CNY10.1 million for the second quarter last year. Excluding the stationery business, revenues from other human resource related services increased 48.8% to CNY10.8 million in the second quarter of 2005 from CNY7.2 million for the same quarter last year.
Gross profit for the second quarter of 2005 was CNY69.9 million, representing an increase of 23.0% from CNY56.9 million for the same quarter last year. Gross margin, which is equal to gross profit divided by net revenues, was 50.2% in the second quarter of 2005 compared with 51.2% in the same quarter in 2004.
Operating expenses for the second quarter of 2005 were CNY51.5 million compared with CNY31.4 million for the same period last year. Operating expenses as a percentage of net revenues was 37.0% for the second quarter of 2005 compared with 28.3% in the June 2004 quarter.
Sales and marketing expenses for the second quarter of 2005 grew to CNY27.0 million from CNY15.9 million for the same quarter in 2004 mainly due to the hiring of additional personnel and increased spending on advertising and promotional activities.
General and administrative expenses for the second quarter of 2005 was CNY21.2 million compared with CNY12.2 million for the second quarter last year. The increase was primarily attributable to higher costs associated with professional services fees and other public company expenses, operating additional sales offices over the comparable 2004 period and increased personnel.
