Jobstreet ... May10

JobStreet Corporation Bhd in revising its dividend policy will distribute half of its annual net profit as dividends starting from the the current financial year ending Dec 31, 2010.

It would begin making quarterly dividends towards this annual target from the quarter ended March 31, 2010. JobStreet did not declare any dividends in FY2009.

For the first quarter just ended, JobStreet posted a 55.4% increase in net profit to RM8.69 million from RM5.59 million a year ago while revenue rose 27% to RM27.63 million from RM21.75 million.

The company attributed the better performance to higher sales of its core products due to improving economic conditions.

The core products JobStreet ESSENTIAL (online job posting service) and JobStreet IMPACT (career website management service) grew 53% and 84.9% year-on-year respectively. However, the increase was partially offset by a decrease in revenue from JobStreet RESOURCE (provision of contract staffing services) by 22.9%.

Moving forward, the company expected to benefit from the economic recovery in the region and the resumption of hiring activities by corporations to facilitate their future growth.

Its 20% stake in Taiwan-based 104 Corporation, which it acquired in April 2010 was expected to contribute positively to its consolidated earnings in 2010. With the elevation of 104 Corp to associate status, the fair value reserve attributed to its investment in 104 Corp amounting to RM29 million as at March 31, 2010 would be reversed and this would impact its other comprehensive income in the second quarter of 2010.