KUALA LUMPUR: JobStreet Corp Bhd’s net profit for its 4QFY11 ended Dec 31, dropped 34.8% to RM7.5 million from RM11.5 million a year ago due to higher operating costs despite revenue rising 15.9% to RM33.9 million from RM29.3 million.

“The increase was mainly due to higher sales reflecting higher recruitment activities. Higher operating expenses namely staff and marketing costs, and office rental resulted in lower profit for the group, declining by 14.7% during the quarter,” JobStreet said in an announcement to Bursa Malaysia yesterday.

The company said its Malaysian operations saw revenue increase 46.7% to RM147.8 million during the quarter. The improved earnings were attributed to adjustments to fees on shared services provided to its subsidiaries outside Malaysia. It added that a higher number of job postings on the company’s Malaysian website helped offset the negative impact on yields stemming from increased competition.

The Singapore market saw revenue rise 21.5% due to higher revenue from JobStreet Impact and Learning. “Results from operating activities in the Singapore market decreased 209.4% due to the adjustment in the basis of technical and management fees charged on shared services and a large increase in marketing expenses,” said JobStreet.

The company’s operations in the Philippines recorded a revenue growth of 40.1%, though results from its operating activities fell 84.6% due to the adjustment in fees.

For the full year, JobStreet’s net profit registered 6.9% growth to RM43.7 million from RM40.98 million while revenue rose nearly 20% to RM139.9 million from RM117.1 million.

This article appeared in The Edge Financial Daily, February 22, 2012.