* Fourth-quarter loss $0.66/share vs earnings $0.09/share
* Revenue drops 10 percent to $211.2 million
* Sells most of China operations; drops Brazil, Mexico and
* Shares fall as much as 14 percent
By Sagarika Jaisinghani
Feb 7 Online recruitment company Monster
Worldwide Inc, which is up for sale, reported a
quarterly loss and said it had exited its businesses in some
developing markets to focus on its core North American and
Monster shares fell as much as 14 percent to $5.01 on
Thursday morning, adding to a one-quarter fall since the company
said almost a year ago it was reviewing strategic alternatives.
The recruitment company, which closed its operations in
Brazil, Mexico and Turkey, said it continued to pursue a sale of
the full company but the process was moving "very slowly".
The parent of Monster.com retained Stone Key Partners and
Bank of America Merrill Lynch in March 2012 to review strategic
Monster has since moved to dispose of several businesses and
said on Thursday it will concentrate on its most profitable
markets in North America, Europe, South Korea and India.
Monster said on Thursday it had also sold its money-losing
China operations to Saongroup, a Dublin-based recruitment firm,
but had retained a 10 percent stake in the combined Chinese
The company's businesses in China and developing markets
accounted for about $50 million of revenue and $85 million of
operating expenses in 2012, Chief Financial Officer James
Langrock said on a call with analysts. Monster had total revenue
of $890.4 million in 2012.
The company has been hurt by weak job markets in the United
States and Europe, which generate the lion's share of its
revenue, as well as growing competition from social networking
Demand has shifted away from Monster's generalized
recruitment website to more specific, niche-focused employment
websites that allow workers and companies to connect directly.
Monster reported its second net loss in two years, hurt by
restructuring charges and an uncertain economic environment in
CEO Sal Iannuzzi said he did not believe the economic
situation in Europe was getting worse, but said it remained "at
a low level", while signs of recovery in the United States were
Monster reported a net loss of $73 million, or 66 cents per
share, in the fourth quarter, compared with a profit of $10.9
million, or 9 cents per share, a year earlier.
The company recorded pre-tax charges of $23 million during
the three months ended December and said it expects additional
charges of $27 million to $37 million in the first half of 2013.
Excluding items, the company earned 8 cents per share.
Revenue fell 10 percent to $211.2 million.
Bookings - the value of all orders received in the quarter -
dropped 30 percent in Europe, while total bookings were down 13
Monster said it expects first-quarter earnings from
continuing operations to be in the range of 6 cents to 10 cents
Analysts on average expect the company to earn 8 cents per
share in the first quarter, excluding items, according to
Thomson Reuters I/B/E/S.
Monster still operates in some developing markets in Eastern
Europe, including Poland, Czech, Hungary, and Russia.