(Reuters) -PageGroup posted a slight drop in third-quarter gross profit on Wednesday, as hiring activity remained subdued in its key European markets, although the British recruiter noted a marginal
PageGroup Reports Strong Profit Growth Driven by US and Asia
(Reuters) -PageGroup's third-quarter profit beat market expectations on Wednesday as the British recruiter cited continued growth in the United States and Asia, sending shares 8% higher.
PageGroup, which focuses on hiring white collar roles, posted gross profit that was slightly above analyst estimates and noted a second consecutive quarter of growth in Asia and 10% growth in the United States.
Global recruiters have been struggling with weak hiring activity as businesses hold back on new appointments and candidates remain reluctant to switch jobs due to economic uncertainty. But signs of improvement in some key markets have begun reassuring investors.
PageGroup's shares, which have lost more than a quarter of their value so far this year, rose 8% to 252 pence at 1012 GMT.
It joined peers Robert Walters and Hays in noting growth in Asia.
Beyond Asia Pacific, recruiters are also seeing an improvement in hiring activity in the U.S., with PageGroup citing solid hiring demand for manufacturing and construction in the U.S. and SThree highlighting growth in contractual hiring.
Still, PageGroup joined other recruiters in flagging persistent weakness in Europe, especially in Germany and France, due to economic and political uncertainty. It also remained cautious about the near-term outlook due to the "unpredictable economic environment".
The recruitment firms have painted a mixed picture about the UK, with Robert Walters on Tuesday noting an improvement in hiring activity, while PageGroup said activity remained subdued.
PageGroup posted gross profit of 187.8 million pounds ($117.2 million) for the three months ended September 30, above the company-compiled consensus of 184.4 million pounds.
($1 = 0.7487 pounds)
(Reporting by Nithyashree R B in Bengaluru, writing by Yadarisa Shabong; Editing by Sherry Jacob-Phillips and Joe Bavier)
