Persol reports Q1 profit miss amid project delays and hiring costs

Published 08/08/2025, 10:30
Persol reports Q1 profit miss amid project delays and hiring costs

Investing.com -- Persol reported first-quarter operating profit of ¥15.4 billion, falling short of analyst expectations of ¥18.2 billion, as the company faced challenges across its technology and overseas divisions.

The profit decline of 9.2% year-over-year was attributed to delays in internal projects, increased hiring that reduced utilization rates, and implementation of new systems in overseas operations. Despite the earnings miss, Persol maintained its first-half and full-year guidance.

First-quarter sales reached ¥373.7 billion, representing a 3.6% increase from the previous year but below the consensus estimate of ¥382.8 billion. Adjusted EBITDA came in at ¥21.8 billion, down 5.1% year-over-year and below analyst expectations of ¥26.1 billion.

The company’s Staffing segment posted revenue of ¥153.0 billion, up 3.7% year-over-year, with adjusted EBITDA rising 5.2% to ¥10.3 billion. This growth was driven by a 2.2% increase in personnel and a 2.1% rise in unit prices.

BPO (Business Process Outsourcing) revenue grew 24.7% to ¥33.989 billion, with adjusted EBITDA increasing 31.9% to ¥1.3 billion. Organic growth without acquisitions was 5.2%, while CSL (OTC:CSLLY) integration contributed ¥400 million to adjusted EBITDA.

The Technology segment, which saw the largest earnings miss, reported revenue of ¥29.3 billion, up 11.7% year-over-year, but adjusted EBITDA fell 25% to ¥867 million.

Career segment revenue increased 6.4% to ¥39.4 billion, with adjusted EBITDA rising 10.4% to ¥10.5 billion. The company is targeting clients earning around ¥6 million and aims to increase productivity while maintaining consultant headcount between 2,800-3,000.

The APAC (Asia-Pacific) segment reported a 4% revenue decline to ¥115.4 billion, with adjusted EBITDA falling 36.9% to ¥2.1 billion. Revenue in local currency terms increased 4.9%, but the segment faced ¥500 million in systems investments and a ¥600 million decrease in subsidies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.