Integrated HR services provider 51job, based in China, has seen revenues increase 13.3% as the group made “solid” progress, according to unaudited financial results for the second quarter of 2016 ended 30 June 2016.

The results, published late yesterday, reveal total revenues increased to RMB595m (£472.3m) on Q3 2015, with gross margin of 71.5% compared with 71.2% in Q3 2015.

Commenting on the results, Rick Yan, president and chief executive, said: “Strategic initiatives we began last year to dedicate efforts and resources to increasing online customer engagement and spending continue to make solid progress.

“In addition to average revenue per unique employer realising its sixth consecutive period of year-over-year improvement, we also saw a faster pace of customer count growth in the third quarter.

“The cross-selling of our other value-added HR services, especially our HR outsourcing services, maintained good momentum, although revenue recognition, and thus comparisons to prior periods, have been and will continue to be impacted by the VAT transition until mid-2017.

“Looking forward, we stay focused on strengthening our value proposition to both jobseekers and employers with a wider range of services, and further cementing our market leadership in the HR industry in China.”

51job Q3 results at a glance:

• Total revenues increased 13.3% over Q3 2015 to RMB595m at the top of the company’s guidance range
• Online recruitment services revenues increased 16.5% over Q3 2015 to RMB398.5m 
• Other HR-related revenues increased 8.2% over Q3 2015 to RMB196.6m, which reflected the impact of a value-added tax policy change effective 1 May 2016
• Gross margin of 71.5% compared with 71.2% in Q3 2015
• Income from operations increased 8.9% over Q3 2015 to RMB146.8m
• Fully diluted earnings per share were RMB1.84 
• Excluding share-based compensation expense, loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items, non-GAAP adjusted fully diluted earnings per share were RMB2.89 (US$0.43), exceeding the company’s guidance range

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