By Nithyashree R B April 15 (Reuters) - Recruitment firm Robert Walters on Wednesday posted a narrower drop in first-quarter net fees following double-digit quarterly declines for nearly three years,
Robert Walters Sees Fee Decline Narrow as Hiring Activity Shows Renewed Confidence
By Nithyashree R B
First-Quarter Results and Market Overview
April 15 (Reuters) - Recruitment firm Robert Walters on Wednesday posted a narrower drop in first-quarter net fees following double-digit quarterly declines for nearly three years, as its largest market Japan returned to growth.
Shares of the legal and technology recruiter rose 4% after it signalled improving confidence in some of its markets, despite weakness in Europe, especially France and the Netherlands.
Geographic Performance and CEO Insights
CEO Toby Fowlston told Reuters that bright spots were emerging in some geographies, including the U.S., Britain, and Spain.
Renewed Confidence in Key Markets
"I think what quarter one is showing us - and again, it is early days - that perhaps there is more confidence returning in some of our markets now in the permanent sector," Fowlston said.
Analyst Commentary and Market Position
Encouraging Signs and Cost Management
ENCOURAGING SIGNS
Analysts at Panmure Liberum said the firm's update was encouraging as the group also focuses on cost management amid a tough hiring market.
Asia Pacific Exposure and Competitive Landscape
Robert Walters, which recruits professionals across finance, accounting, and corporate roles, makes 42% of its annual net fees from the Asia Pacific region, an exposure that underpins its stronger optimism about hiring activity than peers.
Rival recruiter PageGroup , whose largest markets remain Europe, Middle East, and Africa, on Tuesday warned of an increasingly uncertain outlook for the rest of the year due to the Middle East conflict and weakness in Germany and France.
Impact of Geopolitical Events
However, Robert Walters said the impact to business from the Iran war remained limited, as the Middle East accounts for only 2% of its portfolio.
Financial Performance and Outlook
Net Fees and Guidance
Income from net fees fell 2% to 65.2 million pounds ($88.39 million) for the quarter ended March 31, after 11 consecutive quarters of double-digit declines. The company kept its 2026 guidance unchanged.
Hiring Volumes and Candidate Confidence
Fowlston said greater confidence among candidates was starting to lift hiring volumes as professionals who had stayed in their jobs since the COVID-19 pandemic were starting to seek new job opportunities.
Industry Updates
Meanwhile, larger rival Hays will post its third-quarter update on Thursday.
($1 = 0.7376 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Sherry Jacob-Phillips and Diti Pujara)
