Interim / Quarterly Report • Aug 13, 2022
Interim / Quarterly Report
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Half-year report
January 1 to June 30, 2022
| Unit | H1 2022 | H1 2021 | Q2 2022 | Q2 2021 | Q1 2022 | |
|---|---|---|---|---|---|---|
| Revenues | in € million | 152.6 | 136.2 | 78.0 | 69.5 | 74.6 |
| Pro forma revenues | in € million | 152.6 | 136.2 | 78.0 | 69.5 | 74.6 |
| EBITDA | in € million | 53.5 | 52.6 | 27.8 | 27.5 | 25.7 |
| Pro forma EBITDA | in € million | 53.5 | 52.6 | 27.8 | 27.5 | 25.7 |
| EBITDA margin | in % | 35 | 39 | 36 | 40 | 34 |
| Pro forma EBITDA margin | in % | 35 | 39 | 36 | 40 | 34 |
| Net profit/loss for the period | in € million | 23.3 | 26.2 | 11.2 | 13.8 | 12.1 |
| Pro forma consolidated net profit/loss for the period |
in € million | 24.3 | 26.0 | 11.7 | 13.6 | 12.6 |
| Earnings per share (diluted) | in € | 4.15 | 4.67 | 2.00 | 2.46 | 2.16 |
| Pro forma earnings per share (diluted) | in € | 4.33 | 4.63 | 2.08 | 2.43 | 2.25 |
| Cash flow from operations | in € million | 53.3 | 58.6 | 14.4 | 18.9 | 38.8 |
| Equity | in million | 124.8 | 138.3 | 124.8 | 138.3 | 150.1 |
| XING platform members, D-A-CH | in million | 21.0 | 19.5 | 21.0 | 19.5 | 20.7 |
| InterNations members | in million | 4.4 | 4.0 | 4.4 | 4.0 | 4.3 |
| kununu Workplace Insights | in million | 7.2 | 5.4 | 7.2 | 5.4 | 6.8 |
| B2B E-Recruiting customers, D-A-CH (subscriptions) |
number | 13,679 | 12,687 | 13,679 | 12,687 | 13,273 |
| Employees (FTE) | number | 1,754 | 1,704 | 1,754 | 1,704 | 1,728 |
Our sites
1 From continuing operations
Contents 4 To our shareholders
New Work SE has been committed to promoting a better working life with a wide range of brands, products and services, thus continuing the success story of XING SE. Founded as the openBC professional network, the Company was renamed XING in 2006 and New Work SE in 2019. Its commitment to a better world of work is also reflected in its name, with New Work serving as the visible framework for all corporate activities. The Company has been listed since 2006. New Work SE acts as a central management and control holding company and as a service department for the subsidiaries. The Company is headquartered in Hamburg and employs a total of around 1,900 staff at several locations including also Munich, Vienna and Porto. For more information, see → new-work.se
Strong brands Eight brands, one goal: to shape the future of work in the interests of people.
Contents
5 Letter from the CEO 7 The New Work SE share
Half-year report 2022 4/35
Back in February, I told you about our strategic realignment. One of the reasons behind this is that companies are desperately seeking skilled professionals and young talent – a need that will become increasingly pressing, as various analyses and studies reveal. We can remedy this situation with our innovative product solutions that provide easy access to the biggest talent pool in the German-speaking region.
Today I am happy to report that the realignment and corresponding adjustment of the monetization strategy started to bear fruit in the first half of this year. Revenues in our B2B E-Recruiting segment, the beating heart of our new strategy, grew by 25 percent year-on-year to €99million, for example. In our B2C segment, New Work SE brought in around €46 million. The 8 percent decrease was expected and is attributable to our new monetization strategy, which emphasizes the recruitment business. Revenues in our smallest segment, B2B Marketing Solutions, rose by 4 percent to more than €8 million. If you are wondering why the Events segment is missing, it is because we are reporting the Events business as an asset held for disposal. As a consequence of focusing squarely on our new strategy, we will no longer continue the Events business in its previous form and are looking for a new owner for our successful ticketing business.
To our shareholders Interim Group management report Interim consolidated financial statements Other information
Pro forma EBITDA rose by 2 percent to €54 million in the reporting period. The EBITDA margin is 35 percent. At €24million, pro forma consolidated net profit was 7 percent lower than in the previous year owing to non-recurring write-downs attributable to the realignment of the XING platform.
We are also delighted to report that the non-financial performance indicators for our two big B2C brands, XING and kununu, are once again recording significant growth. XING welcomed 1.4 million new members year-on-year, which brings its total subscriber base to around 21 million, further underlining the brand's role as the leading job network in the German-speaking region. kununu, the leading employer review platform in D-A-CH, again substantially increased its review, corporate culture and salary information. kununu had 7.2 million workplace insights by the end of the first half, including more than 2.1 million pieces of salary information.
We believe this trend confirms that we are on the right track with our Group strategy. The demographic change is exacerbating the shortage of skilled workers, making talented and skilled professionals a rare and therefore highly sought-after commodity. The COVID-19 pandemic accentuated this trend in that companies are now recruiting in other cities without candidates being required to move. And it is precisely this situation, which is dramatic for so many companies, that we are addressing with our innovative solutions, giving HR departments access to the biggest talent pool in the German-speaking region and helping them find the skilled professionals they urgently need. Our objective is clearly defined: We aim to be the leading recruitment partner in D-A-CH. And we believe we are well on track to achieve this goal.
"The shortage of skilled workers is seen as the major challenge for the future of companies."
The economic outlook has deteriorated – quite considerably in some cases. However, so far we can observe that companies' economic situation is not reflected in the labor market. Many experts expect this phenomenon to continue in the future because the demographic trend is simply too profound and lasting. Anecdotally, I can also report that at the New Work Experience – probably the leading event on the future of work, which we held at Hamburg's Elbphilharmonie concert hall in June – every single one of the numerous company representatives I spoke to considered the skills shortage to be a major challenge for the future of their own company.
In this respect, we remain very optimistic about the future and are raising our revenue forecast slightly from high single digits to low double digits.
Thank you for placing your trust in us!
Yours sincerely,
Petra von Strombeck Chief Executive Officer (CEO)
The New Work SE share
To our shareholders Interim Group management report Interim consolidated financial statements Other information
| Number of shares | 5,620,435 |
|---|---|
| Share capital in € | 5,620,435 |
| Share type | Registered shares |
| IPO | 12/07/2006 |
| Ticker | NWO |
| WKN | NWRK01 |
| ISIN | DE000NWRK013 |
| Transparency level | Prime Standard |
| Index | SDAX |
| Sector | Software |
| H1 2022 | H1 2021 | |
|---|---|---|
| XETRA closing price at the end of the period | €135.40 | €265.00 |
| High | €228.00 | €290.50 |
| Low | €123.40 | €214.00 |
| Market capitalization at the end of the period | €761.0 million | €1.5billion |
| Average trading volume per day (XETRA) | 4,040 | 2,736 |
| Earnings per share from continuing operations | €4.15 | €4.67 |
| Pro forma earnings per share | €4.33 | €4.63 |
Shareholder structure in August 2022
| Broker | Analyst Recommendation | Price target | |
|---|---|---|---|
| Berenberg Bank | Catharina Claes | Buy | €220 |
| Deutsche Bank | Nizla Naizer | Hold | €222 |
| Hauck & Aufhäuser | Nicole Winkler | Buy | €306 |
| Pareto Securities | Mark Josefson | Buy | €255 |
| Warburg Research | Marius Fuhrberg | Buy | €279 |
Contents
Interim Group management report
for the period from January 1 to June 30, 2022
9 Business and operating environment 20 Report on opportunities, risks and expected developments
Half-year report 2022 8/35
In a speech before the German parliament (Bundestag) on February 26, the Chancellor of the Federal Republic of Germany referred to Russia's attack on Ukraine as a turning point in the history of Europe. This event in fact overshadows the multiple impacts from the still festering pandemic, which has weighed heavily on the past two years. For example, the global supply bottlenecks that arose last year as a consequence of the pandemic have persisted in 2022 and been exacerbated by the war in Ukraine. Deep economic sanctions, commodity embargoes, and concerns about shortfalls in material supplies triggered by the war depressed economic development in the first half of the year, causing sudden, steep price increases all around the world. The close global economic integration was clearly reflected in high inflation rates and volatility in the foreign exchange and securities markets. According to OECD estimates, the global economy expanded by just 0.7 percent quarter-on-quarter in the first quarter of 2022, down from 1.3 percent in the previous quarter. The International Monetary Fund (IMF) estimates that it is likely to have even contracted in the second quarter.
The war in Ukraine hit the euro area particularly hard due to its geographical proximity and heavy dependence on raw materials and intermediate products from Russia and China. Except for a special cyclical development in Ireland, GDP growth in the first quarter came in at just 0.3 percent. In response to the jump in inflation, fueled by trends in the commodity and food markets, to 8.1 percent – in several
euro-zone countries inflation has already reached 20 percent – the ECB Governing Council decided in July to raise interest rates by half a point for the first time in eleven years. Following on the heels of other central banks, the ECB thus took account of the sharp decline in the euro exchange rate, which fell to parity with the U.S. dollar and Swiss franc and is driving inflation in the euro area. In spite of the risks presented by the war in Ukraine, the ECB projects slight growth in the second quarter. The optimism was underpinned by the favorable effect on consumer behavior of the relaxation of restrictions relating to the coronavirus pandemic.
As the country with the biggest economy, Germany has a particularly strong impact on the situation in the EU. The German economy expanded slightly in the spring, buoyed by increased consumer spending following the lifting of the coronavirus protection measures. However, continuing supply chain problems, looming gas shortages, rising inflation, and persistent skills shortages have strangled industrial growth. The decline in industrial order intake in the first half of 2022 owing to a lack of major orders is especially pronounced. The ifo business climate index attests to the more somber assessment. While the climate in the service and construction sectors is still considered favorable, the retail and manufacturing sectors rate it as worse. Since February 2022– before Russia invaded Ukraine – the index has declined by 10 points, dropping to 88.6 points in July. The IHS Markit Purchasing Managers' Index (PMI) is also falling sharply toward 50 points (54.6 points in April 2022). Consumer confidence and earnings prospects have slipped markedly, too. The GfK Consumer Confidence Index for August 2022 fell to – 30.6 points, a new record low in consumer sentiment. Germany is on the cusp of a recession.
The Austrian economy also developed in line with the general EU trend in the first half of the year. Strong GDP growth at the beginning of the year was followed by extremely muted economic performance. At 7.7 percent (HICP), inflation was not as high as the level for the EU as a whole.
Somewhat detached from the in some cases dramatic developments in individual EU countries, the Swiss economy sustained its GDP growth with an increase of 0.4 percent in the first quarter of 2022, receiving a strong boost from manufacturing. By comparison, the inflation rate in Switzerland remains at a very low level of 2.9 percent (May 2022). This is probably due to the lower weighting of energy in the index, tariff cuts, and price stabilization measures in the agricultural sector, as well as a lag in electricity price adjustments.
The situation on the labor market remained stable overall in the first half of 2022 despite the precarious economic climate – not taking into account the Ukrainian refugees comprehensively recorded in June. While demand for new staff weakened slightly, it remained at a high level. Takeup of short-term working subsidies fell sharply.
The number of people in employment increased by 1.7 percent year-on-year to 45.5million, mainly due to the rise in the number of jobs subject to social security contributions. The unemployment rate calculated by the Federal Statistical Office using the International Labour Organization's (ILO) model decreased to 2.7 percent (previous year: 3.7 percent). In this rate, marginally employed persons (working fewer than 15 hours per week), for example, are not registered as employed; the decrease in the rate provides a picture of the shortage of labor in Germany. The unemployment rate calculated by the Federal Employment Agency in accordance with Book III of the Social Code fell accordingly by half a percentage point to 5.2 percent. In the apprenticeship market, the number of training places on offer again increased significantly, though the number of applicants continued to drop, with the ratio falling by 7.3 percent to 100:76 (previous year: 100:82).
In Austria, greater demand for staff in the wake of the coronavirus pandemic also reduced the jobless rate from 7.0 to 5.5 percent. The number of open positions reached a new high of 141,000 (previous year: 109,000) and explains the sharp drop in unemployment.
A similar situation can be observed in Switzerland, where the unemployment rate continued its steep downtrend from 2.9 percent in the previous year to 2.0 percent in June 2022.
The ILO unemployment rates in the markets of the D-A-CH region are markedly different from the EU rate. At 6.6 percent, the EU rate is much improved over the previous year (8.0 percent) but continues to be impacted by labor market problems in the Mediterranean countries.
Note: Reflecting its strong focus on a new strategy, New Work SE reports the Events business as a discontinued operation. For this reason, all key financial figures presented in the interim consolidated financial statements and management report (in particular those of the B2B Marketing Solutions segment (& Events)) are calculated based on continuing operations and restated retrospectively where necessary.
Net profit for the period from continuing operations in € million
Earnings per share from continuing operations in €
At €152.6 million, the Group's revenues were 12 percent higher than the prior-year figure of €136.2million. Our strategic core business, B2B E-Recruiting, makes the most important contribution here by reporting growth of 25 percent.
Own work capitalized in the reporting period amounted to €9.9million, which is slightly down on the previous year (H1 2021: €11.8 million) This item is composed of personnel expenses, freelancer costs and ancillary costs.
Personnel expenses increased from €66.3million in the first half of 2021 to €70.2million in the current financial year. The increase is mainly due to salary adjustments, bonuses and the accelerated expansion of our employee base.
At €18.9million, marketing expenses were up around 43 percent on the prior-year figure. This is due to a change in the seasonality of expenses as there was no branding campaign in the prior-year period.
Other operating expenses saw a considerable increase in the reporting period by 35 percent year-on-year to €20.4million (H1 2021: €15.1million). The main reasons for this increase are the return to normality and the end of lockdowns after the coronavirus crisis. External services (incl. consulting projects) as well as travel and entertainment costs rose year-on-year
as a result. Server hosting, administration, traffic and license costs also increased compared to the same period last year. The notes to the financial statements include a detailed table of all items reported under other operating expenses.
In the 2022 reporting period, impairment losses amounted to €1.0million compared with €1.5million in the first half of 2021. The decrease is mainly due to a lower level of bad debts.
In the reporting period, we generated an operating result (EBITDA) of €53.5million (H1 2021: €52.6million). As there were no extraordinary items in the reporting period, reported EBITDA for the first half-year corresponds to pro forma EBITDA. The lower growth in the first half of the year is attributable to a change in the cost's seasonality compared to the previous year (marketing expenses were lower in H1 2021, for example), a lower level of capitalization of internal software development costs, and the return to normality (travel and entertainment costs, for example) after the coronavirus crisis.
Depreciation, amortization and impairment losses rose by 21 percent from €14.5 million (including €1.3 million in PPA depreciation and amortization) to €17.5 million (including €1.3million in PPA depreciation and amortization). The increase is mainly due to non-recurring write-downs in connection with platform modules no longer in use in the B2C segment.
At €–2.0million, the financial result in the reporting period was significantly lower than the previous year's figure of €–0.1 million. Here, two non-recurring factors must be highlighted:
Current taxes are determined by the Group companies based on the tax laws applicable in their country of domicile. Tax expense amounted to €10.7million in the reporting period, up from €11.7million in the prior-year period. It includes minor, positive one-time effects, particularly in the first half of 2022 in connection with the termination remeasurement of investments (€0.5million).
Consolidated net profit in the first half of 2022 amounted to €23.3million, compared with €26.2million in the prior-year period. This gives rise to earnings per share of €4.15, compared with €4.67 in the prior-year period. The pro forma profit for the first half of 2022 adjusted for non-recurring effects is €24.3million, compared with a pro forma profit for the first half of 2021 of €26.0million. Pro forma earnings per share fell accordingly from €4.63 (H1 2021) to €4.33 in the first half of 2022. The decline is attributable to a change in the cost's seasonality compared to the previous year, a lower level of capitalization of costs of internally developed software, the return to normality after the coronavirus crisis (travel and entertainment costs, for example), and one-off write-downs of platform modules in the B2C segment that are no longer used.
| Change Change, in % absolute |
|---|
| 12 16.5 |
| 126 0.9 |
| – 16 – 1.9 |
| 6 – 3.9 |
| 43 – 5.7 |
| 35 – 5.3 |
| – 34 0.5 |
| 2 1.0 |
| 21 – 3.1 |
| – 5 – 2.1 |
| 23 – 0.1 |
| – 6 – 2.2 |
| – 4 0.5 |
| – 7 – 1.7 |
| – 7 – 0.3 |
| in € million | P&L, not adjusted 04/01– 06/30/2022 |
Operating business of discontinued operations (like-for-like) |
Changes in the basis of consolidation (M&A) |
Impairment of goodwil |
Changes in earn-out liabilities |
Remeasurement of non-operating financial instruments |
Restructuring expenses |
P&L, pro forma, 04/01/– 06/30/2022 |
P&L, pro forma, 04/01/– 06/30/2021 |
Change in % |
Change, absolute |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | 78.0 | 78.0 | 69.5 | 12 | 8.5 | ||||||
| Other operating income | 0.7 | 0.7 | 0.4 | 102 | 0.4 | ||||||
| Other own work capitalized | 4.7 | 4.7 | 5.5 | – 16 | – 0.9 | ||||||
| Personnel expenses | – 35.1 | – 35.1 | – 33.2 | 6 | – 1.9 | ||||||
| Marketing expenses | – 8.6 | – 8.6 | – 5.8 | 49 | – 2.8 | ||||||
| Other operating expenses | – 11.1 | – 11.1 | – 8.4 | 33 | – 2.8 | ||||||
| Impairment losses on financial assets and contract assets |
– 0.7 | – 0.7 | – 0.6 | 23 | – 0.1 | ||||||
| EBITDA | 27.8 | 27.8 | 27.5 | 1 | 0.3 | ||||||
| Depreciation, amortization and impairment losses |
– 9.9 | – 9.9 | – 7.5 | 33 | – 2.4 | ||||||
| EBIT | 17.9 | 17.9 | 20.0 | – 10 | – 2.1 | ||||||
| Net financing income | – 0.9 | 0.6 | – 0.3 | – 0.3 | 15 | 0.0 | |||||
| EBT | 17.0 | 0.6 | 17.6 | 19.7 | – 11 | – 2.1 | |||||
| Taxes | – 5.7 | – 0.2 | – 5.9 | – 6.1 | – 2 | 0.2 | |||||
| Consolidated net profit/loss from continuing operations |
11.2 | 0.4 | 11.7 | 13.6 | – 15 | – 2.0 | |||||
| Earnings per share from continuing operations in € |
2.00 | 0.08 | 2.08 | 2.43 | – 15 | – 0.4 |
| in € million | P&L, not adjusted 01/01/– 06/30/2021 |
Operating business of discontinued operations (like-for-like) |
Changes in the basis of consolidation (M&A) |
Impairment of goodwil |
Changes in earn-out liabilities |
Remeasurement of non-operating financial instruments |
Restructuring expenses |
Other non-recurring effects |
P&L, pro forma, 01/01/– 06/30/2021 |
|---|---|---|---|---|---|---|---|---|---|
| Revenues | 136.2 | 136.2 | |||||||
| Other operating income | 0.7 | 0.7 | |||||||
| Other own work capitalized | 11.8 | 11.8 | |||||||
| Personnel expenses | – 66.3 | – 66.3 | |||||||
| Marketing expenses | – 13.2 | – 13.2 | |||||||
| Other operating expenses | – 15.1 | – 15.1 | |||||||
| Impairment losses on financial assets and contract assets |
– 1.5 | – 1.5 | |||||||
| EBITDA | 52.6 | 52.6 | |||||||
| Depreciation, amortization and impairment losses |
– 14.5 | – 14.5 | |||||||
| EBIT | 38.1 | 38.1 | |||||||
| Net financing income | – 0.1 | – 0.4 | – 0.5 | ||||||
| EBT | 38.0 | – 0.4 | 37.6 | ||||||
| Taxes | – 11.7 | 0.1 | – 11.6 | ||||||
| Consolidated net profit/loss | 26.2 | – 0.2 | 26.0 | ||||||
| Earnings per share in € | 4.67 | – 0.04 | 4.63 |
| in € million | P&L, not adjusted 04/01/– 06/30/2021 |
Operating business of discontinued operations (like-for-like) |
Changes in the basis of consolidation (M&A) |
Impairment of goodwil |
Changes in earn-out liabilities |
Remeasurement of non-operating financial instruments |
Restructuring expenses |
Other non-recurring effects |
P&L, pro forma, 04/01/– 06/30/2021 |
|---|---|---|---|---|---|---|---|---|---|
| Revenues | 69.5 | 69.5 | |||||||
| Other operating income | 0.4 | 0.4 | |||||||
| Other own work capitalized | 5.5 | 5.5 | |||||||
| Personnel expenses | – 33.2 | – 33.2 | |||||||
| Marketing expenses | – 5.8 | – 5.8 | |||||||
| Other operating expenses | – 8.4 | – 8.4 | |||||||
| Impairment losses on financial assets and contract assets |
– 0.6 | – 0.6 | |||||||
| EBITDA | 27.5 | 27.5 | |||||||
| Depreciation, amortization and impairment losses |
– 7.5 | – 7.5 | |||||||
| EBIT | 20.0 | 20.0 | |||||||
| Net financing income | 0.0 | – 0.3 | – 0.3 | ||||||
| EBT | 20.0 | – 0.3 | 19.7 | ||||||
| Taxes | – 6.2 | 0.1 | – 6.1 | ||||||
| Consolidated net profit/loss | 13.8 | – 0.2 | 13.6 | ||||||
| Earnings per share in € | 2.46 | – 0.03 | 2.43 |
| Financial key performance indicators (Annual Report) |
Forecast for 2022 (Annual Report 2021) (before IFRS 5) |
Forecast for 2022 (Annual Report 2021) (restated pursuant to IFRS 5) |
Progress H1 2022 (after IFRS 5 restatement) |
|---|---|---|---|
| Pro forma consolidated revenues | Single-digit percentage growth | Single-digit percentage growth | +12% |
| Pro forma consolidated EBITDA | Single-digit percentage growth | Single-digit percentage growth | + 5% |
| Pro forma revenues, B2C segment | Single-digit percentage decline | Single-digit percentage decline | – 8% |
| Pro forma EBITDA, B2C segment | Double-digit percentage decline | Double-digit percentage decline | – 34% |
| Pro forma revenues, B2B E-Recruiting segment | Double-digit percentage growth | Double-digit percentage growth | +25% |
| Pro forma EBITDA, B2B E-Recruiting segment | Double-digit percentage growth | Double-digit percentage growth | +24% |
| Pro forma revenues, B2B Marketing Solutions segment 1 | Double-digit percentage growth | Double-digit percentage growth | + 4% |
| Pro forma EBITDA, B2B Marketing Solutions segment 1 | Double-digit percentage growth | Single-digit percentage growth | – 20% |
Explanation: The B2B Marketing Solutions & Events segment was renamed B2B Marketing Solutions due to the decision to terminate and sell the event and ticketing business and disclose these businesses as discontinued operations (IFRS 5). We added the forecast for financial year 2022 as restated retrospectively in accordance with IFRS 5 to the forecast table presented here. IFRS 5 restatement only affects the growth forecast for pro forma EBITDA in the B2B Marketing Solutions segment, where we expect single-digit percentage growth for the Marketing Solutions business remaining after IFRS 5 restatement. The retrospective IFRS 5 restatement does not affect the other forecast statements.
| Non-financial key performance indicators | Forecast for 2022 | Progress H1 2022 |
|---|---|---|
| B2C segment: Members in the D-A-CH region | Single-digit percentage growth | + 7% |
| B2B E-Recruiting segment: Number of subscription-based corporate customers (B2B) |
Double-digit percentage growth | + 8% |
Non-current assets decreased by €6.5 million from €250.1 million as of December 31, 2021 to €243.6million as of June 30, 2022. The December 31, 2021 figure included platform components amounting to €2.3million for the Events business, which are now reported under "Assets held for sale" in the statement of financial position. Amortization of €9.6million was recognized when new modules for the platforms were capitalized (€9.9 million). The other depreciation mainly relates to the right-of-use assets of €3.2million. The share of non-current assets in total assets decreased by 3 percentage point year-on-year.
On June 30, 2022, the Group had liquid own funds of €87.9million (December 31, 2021: €86.5million) and available-for-sale securities amounting to €29.1 million (December 31, 2021: €30.1million), which means that 31 percent of total assets are available short term.
Internally generated intangible assets include those parts of the platforms and the mobile applications that qualify for capitalization. Investments in internally generated and purchased software totaled €9.8million (previous year: €11.4million).
As was the case in previous years, the Group is financed solely from equity and the Company does not have any bank loans or other such loans.
As of the closing date, the Group's equity ratio remained stable at 33 percent. The Group thus continues to be in an excellent position for future growth. Non-current liabilities mainly comprise deferred tax liabilities of €21.2million (previous year: €21.5million) and lease liabilities of €57.4million (previous year: €58.0million) and are directly related to the corresponding non-current assets.
The cash flows from operating activities for the reporting period amounted to €53.3million after €58.6million in the previous year. This decrease primarily resulted from a year-on-year decrease in the change in working capital of €– 5.3million.
The decrease in the negative cash flow from investing activities by €10.6million from €24.8million to €14.2million is mainly due to the reduction in payments made for the acquisition of property, plant and equipment (previous year dominated by leasehold improvements in the new office building) from €10.2million to €3.5million.
During the 2022 financial year, the Group distributed a regular dividend of €15.7million (previous year: €14.6million) and a special dividend of €20.0million (previous year: €0.0million). Conversely, the Company received lease incentives (subsidy for leasehold improvements) of €2.8million in connection with the new headquarters.
The B2B E-Recruiting segment is back on a growth trajectory, with revenues rising by 25 percent in the first half of 2022 to €98.8million (H1 2021: €78.7million). The outbreak of the pandemic had caused a considerable slowdown in new customer growth in particular. The labor market has picked up considerably since the beginning of the year, and strong demand for suitable candidates is reflected accordingly in the customer trend. In the first half of 2022, we added more B2B subscription customers than in 2020 and 2021 combined. The customer base also expanded to 13,679 at the end of June 2022.
Segment EBITDA likewise witnessed dynamic growth and improved by 24 percent from €54.8million to €67.9million.
The labor market remains in very good shape. Demand for talent in Germany is strong despite high inflation, supply chain problems and the war in Ukraine. At 137 points, the BA-X labor demand index in Germany is close to its high for the past few years.
We believe that these challenging conditions for employers to find and address suitable talent call for a new mindset in recruitment.
Recruitment is a topic that has long been a concern not only for HR managers, but for the entire company. This is because with the digital transformation, demographic and cultural change, changing customer requirements, disruptive innovations, and faster and faster market cycles, the pressure on companies to transform is growing. The pandemic has further accelerated the pace of change, forcing many companies to digitalize and modernize their business models, processes, and infrastructure virtually on the fly. And achieving long-term success in this environment requires the right people. Plus, to find the skilled professionals they urgently need, companies can no longer rely on proven strategies and learned routines. What we all need is a new understanding of recruitment – we need "New Hiring" that takes into account
the principles of New Work and translates them into futureproof models, methods and tools to find the right employees at the right time in the new world of work. New Work also needs a new approach to hiring – starting with employer branding, then finding skilled professionals and culminating in the candidate experience.
The NEW HIRING Conference (NHC) celebrated its successful premiere at the end of June when some 220 recruitment experts, recruiters and HR managers met up at Hamburg's Elbphilharmonie concert hall and at the NEW WORK Harbour, the headquarters of New Work SE, to discuss new strategies and get inspiration for their everyday work.
After Petra von Strombeck had welcomed the guests, Professor Heike Bruch opened the program. In her keynote speech entitled "New Work & Culture – Trend Lines of an Epoch Change", the progressive thinker in new leadership showed how acute the shortage of skilled labor really is. In the panel discussion that followed, moderator Cliff Lehnen, editor-in-chief of Personalwirtschaft magazine, spoke with diversity expert Tijen Onaran and Gero Hesse, blogger, podcaster and HR marketing specialist, on the topic of "NEW HIRING – how recruitment can work today and in the future".
In the B2C segment, revenues saw the expected decline of – 8 percent to €45.6million during the period under review (previous year: €49.5million).
The decrease is mainly due to a lower number of Premium members. One of the reasons for this trend was the fact that the continued recovery in the labor market and the surge in demand for workers (BA-X Index) meant that fewer members needed to make use of a Premium membership to help them change jobs. Furthermore, our strategic focus is not to emphasize direct monetization of B2C users, for example via paid memberships, but monetization via our B2B E-Recruiting. The B2C segment is mostly about expanding access to talent.
Segment profitability was down 34 percent on the previous year's figure with EBITDA of €15.0million (H1 2021: €22.7million). The decrease is mainly due to the decline in revenues and to investments in expanding access to talent such as the marketing campaign carried out at kununu in the first half of 2022.
Workplace insights 12/31/2021 Workplace insights 06/30/2022 Growth H1 2022
The membership base of the XING platform operated by New Work SE grew to 21.0 million in the first half of 2022. We counted 643 thousand new members to the platform in the first six months of the year.
The offering of our kununu platform just keeps on growing. The number of workplace insights rose by 5.4 million to 7.2million, an increase of more than 30 percent. This includes, for example, some 4.5million authentic experience reports on over 550,000 companies. In addition, the number of salary statements submitted rose to 2.1million for over 60,000 companies.
By the end of June, users of the kununu Culture Compass had also submitted nearly 620,000 culture assessments for more than 130,000 companies.
To support the German hotel industry in attracting and retaining skilled staff, the German Hotel Association (IHA) and kununu announced their collaboration in June. This is intended to strengthen the industry's competitive position by providing more transparent information on working conditions in the hotel trade. To achieve this, the partners want to join forces to increase the number and quality of employer reviews submitted in the hotel industry.
In collaboration with the ZEIT Publishing Group, kununu has developed the "Most Wanted Employer" seal and for the first time identified the 1,000 most popular employers in Germany for 2022.
The B2B Marketing Solutions segment posted slight revenue growth of 4 percent, lifting revenues to €8.2million.
Segment EBITDA narrowed by 20 percent to €4.4million, mainly due to higher marketing and personnel expenses (H1 2021: €5.6million).
On the product side, we added two features to our AdManager. One is the Save Audiences feature, which allows our customers to permanently save audiences and target groups for future use. We also optimized the AdManager algorithm to play out campaign budgets more effectively over the entire campaign period.
Furthermore, we had an exhibition stand at the OMR 2022 (70,000 visitors).
Report on opportunities, risks and
expected developments
As of mid-2022 the global economy is feeling pressure from many different crises – primarily caused by the climate crisis, the war in Ukraine, and the impact of the coronavirus pandemic. The resulting challenges, such as energy supply, raw material shortages, sanctions and embargoes, armament, organization of refugee movements, supply bottlenecks, food and medical supplies, labor shortages and inflation, to name but a few, are putting a strain on the global economy and Europe, but particularly on Germany.
The global economy is feeling the effects of this most clearly in the increase in inflation. In contrast to last year's forecasts and those made at the beginning of the year, central banks now expect a protracted rise in prices across the board, driven by the impact of the war on commodity trading and the trade in goods and general price pressures emanating from this. The IMF forecasts that inflation will rise to 6.6 percent in the industrialized nations in 2022, around 6 percentage points above the level of the past decade. The ifo economic experts expect inflation to recede only slowly in the coming years.
In view of these serious crises, which occurred simultaneously, deep cuts in global economic growth are anticipated. The IMF expects a drop in the rate of growth from 6.1 percent in 2021 to 3.2 percent for 2022 and to just 2.9 percent next year. This is contingent on containment of the war in Ukraine and lifting of the restrictions imposed as a result of the coronavirus pandemic.
The reduced expectations also apply in principle to the EU, given its geographical and political proximity to events in Ukraine. However, prices have risen particularly sharply in this economic area because agricultural products have become scarcer due to the war in Ukraine, new supply bottlenecks have arisen, and increased demand for services since the lifting of the pandemic restrictions has pushed up prices.
Germany's situation is further aggravated by the unstable supply of raw materials due to the war. Particularly the dependence on Russian gas is creating uncertainty among policymakers and in the business community. Although it takes time for high prices and possible supply restrictions to take effect, raw materials are initially price drivers that will only be able to be reined in again in the second half of the year by the upward forces of the economy. In this scenario, the Bundesbank still forecasts GDP growth of 1.9 percent for 2022, rising to 2.4 percent for 2023 and exhausting Germany's production potential at 1.8 percent in 2024. Inflation measured against the Harmonised Index of Consumer Prices (HICP) is forecast at around 7 percent for 2022 and expected to fall back to 4.5 and 2.6 percent in the two subsequent years. In light of the growing risk of recession, the Bundesbank simulated an adverse risk scenario within the euro system. It assumes, among other things, the loss of Russian energy exports and shows a temporary recession with a somewhat higher inflation rate. The IMF considers this scenario to be more realistic in its July outlook, forecasting growth rates of 1.2 percent for the current year and of 0.8 percent for 2023.
Developments at Germany's two major trading partners are also sobering in this view: While the USA had to contend with negative GDP growth and high inflation in the first quarter of 2022, tough coronavirus-related lockdowns clouded growth prospects in China.
Similar basic considerations should apply to the economies of Austria and Switzerland.
Two opposite effects are affecting the labor market in Germany in the short-term. Companies are reporting difficulties in recruiting staff as the number of job vacancies increases, while the Ukraine war, supply chain problems, and price rises are driving up uncertainty. Both of these effects are dampening the expansion of employment. The Bundesbank therefore expects unemployment in 2022 to drop only slightly to 5.0 percent and projects a figure of 4.9 percent for 2023. The corresponding ILO rates are 3.0 percent for 2023 and 2024.
In the long-term, we believe that the ongoing demographic shift in the population, i.e., an increasingly top-heavy age pyramid, is having a sustained negative effect on the supply of labor. The number of people in employment is projected to rise marginally in 2023 and max out in 2024. Reserves for expanding employment will then exist only in the form of more overtime and increasing part-time employment.
Report on opportunities, risks and expected developments
Demographics are restricting the supply of labor in Austria, too. The labor market is clearly under duress due to an increasing shortage of skilled workers and a regional mismatch. The unemployment rate is expected to drop significantly to 5.9 percent for 2022, falling to 5.1 percent by 2024.
Switzerland is experiencing a low-level standstill in its unemployment trend. In line with the ILO model, the Center of Economic Research at ETH Zurich forecasts unemployment of 4.2 percent for the current year and for 2023.
The dramatic shift in the work environment toward hybrid work over the past two years due to the coronavirus pandemic has also rapidly changed recruitment – not only from a technical perspective, but also in structural terms due to the ongoing labor shortage. Today, the labor market is predominantly determined by job applicants and no longer by job providers. Recruitment is therefore candidate-focused, with a trend towards automation using artificial intelligence (AI) processes.
➡ This will further accelerate the change in the e-recruiting environment in the coming years. We expect that remote recruitment, an increasing level of automation and use of AI in recruitment, the building of talent pools using job
exchanges, social media platforms and networks will continue to play an ever bigger role going forward. In our view, the need to invest in employer branding to attract potential candidates will be another important factor for human resources development in the coming years.
In a candidate-driven environment, it is critical to be on the cutting edge of technology and develop effective hiring strategies. The use of recruitment portals, career platforms and business networks is a crucial success factor on this path. This is where we as New Work SE see ourselves in an excellent position with our products and services.
Based on developments to date and the current environment known to us, we can provide the following updated guidance on the revenue and earnings targets for the Group and the main segments. We now expect the threshold from singledigit revenue growth to double-digit revenue growth to be exceeded slightly in financial year 2022. The target values could change significantly if inflation, supply chain problems or the consequences of the war in Ukraine affect labor demand in Germany to a greater extent than expected or have a negative impact on the search for new employees.
| Financial key performance indicators (Annual Report) |
Forecast for 2022 (Annual Report 2021) (before IFRS 5) |
Forecast for 2022 (Annual Report 2021) (restated pursuant to IFRS 5) |
New forecast for (Half-year Report 2022) (after IFRS 5 restatement) |
|---|---|---|---|
| Pro forma consolidated revenues | Single-digit percentage growth | Single-digit percentage growth | Double-digit percentage growth |
| Pro forma consolidated revenues | Single-digit percentage growth | Single-digit percentage growth | Single-digit percentage growth |
| Pro forma revenues, B2C segment | Single-digit percentage decline | Single-digit percentage decline | Single-digit percentage decline |
| Pro forma EBITDA, B2C segment | Double-digit percentage decline | Double-digit percentage decline | Double-digit percentage decline |
| Pro forma revenues, B2B E-Recruiting segment | Double-digit percentage growth | Double-digit percentage growth | Double-digit percentage growth |
| Pro forma EBITDA, B2B E-Recruiting segment | Double-digit percentage growth | Double-digit percentage growth | Double-digit percentage growth |
| Pro forma revenues, B2B Marketing Solutions segment 1 Double-digit percentage growth | Double-digit percentage growth | Double-digit percentage growth | |
| Pro forma EBITDA, B2B Marketing Solutions segment 1 | Double-digit percentage growth | Single-digit percentage growth | Single-digit percentage growth |
1 The B2B Marketing Solutions & Events segment was renamed B2B Marketing Solutions due to the decision to terminate and sell the event and ticketing business and recognize these businesses as discontinued operations.
Report on opportunities, risks and
expected developments
| Financial key performance indicators | Forecast for 2022 | New forecast for (Half-year Report 2022) |
|---|---|---|
| B2C segment: Members in the D-A-CH region | Single-digit percentage growth | Single-digit percentage growth |
| B2B E-Recruiting segment: Number of subscription-based corporate customers (B2B) |
Double-digit percentage growth | Double-digit percentage growth |
At the time of preparing this half-year report, the assessment of opportunities has not changed compared to the presentation in the Annual Report 2021.
Permanent monitoring and management of risks are key tasks of a listed company. For this purpose, New Work SE has implemented the risk early warning system required in accordance with Section 91 (2) AktG and continuously develops it within the context of current market and company developments. As was the case in the previous year, the auditor of the annual financial statements again confirmed the functionality of the system.
Each individual employee is required to avert potential loss from the Company. One of their tasks is to immediately remove all risks in their own area of responsibility and to immediately notify the corresponding risk management contacts at New Work SE in the event of any indications of existing risks or risks which might arise. An essential requirement for such a task is knowledge of the risk management system and maximum risk awareness of each individual employee. For this reason, New Work SE familiarizes its employees with the risk management system using information material and draws their attention to the significance of risk management.
Potential risks are continually identified and analyzed. Identified risks are then systematically evaluated as to their probability of occurrence and the expected potential loss. The persons with risk responsibility and senior executives are questioned with regard to the status of existing risks and the identification of new risks in the course of quarterly risk inventories and status queries. Risks are measured using the gross and net method, which means that the probability of occurrence and the expected loss are estimated both without and by taking into account countermeasures.
The subsidiaries XING Events GmbH, New Work Young Professionals GmbH, InterNations GmbH, Honeypot GmbH and NEW WORK AUSTRIA XING kununu Prescreen GmbH have been integrated into the Group's risk management system. Here, potential risks are also continually identified and analyzed, and persons with risk responsibility and senior executives are also questioned with regard to the status of existing risks on a quarterly basis. This integration helps to ensure early recognition too of any risks originating from the operating subsidiaries that may have a negative long-term impact on the Company.
The risk management system covers only risks and countermeasures but not opportunities.
Taking into account the countermeasures taken, no further going concern risks were identified in addition to the risks presented in the 2021 Annual Report.
To our shareholders Interim Group management report Interim consolidated financial statements Other information
Contents
Interim consolidated financial statements
for the period from January 1 to June 30, 2022
der New Work SE for the period from January 1 to June 30, 2022
| In € thousand | Note no. | 01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
04/01/– 06/30/2022 |
04/01/– 06/30/20211 |
|---|---|---|---|---|---|
| Continuing operations | |||||
| Service revenues | 3 | 152,610 | 136,155 | 78,032 | 69,501 |
| Other operating income | 1,567 | 693 | 706 | 350 | |
| Other own work capitalized | 9,869 | 11,815 | 4,665 | 5,528 | |
| Personnel expenses | – 70,194 | – 66,292 | – 35,100 | – 33,155 | |
| Marketing expenses | – 18,900 | – 13,215 | – 8,639 | – 5,805 | |
| Other operating expenses | 4 | – 20,398 | – 15,076 | – 11,117 | – 8,530 |
| Impairment loss on financial assets and contract assets |
5 | – 1,005 | – 1,529 | – 722 | – 589 |
| EBITDA | 53,549 | 52,551 | 27,825 | 27,480 | |
| Depreciation, amortization and impairment losses |
6 | – 17,537 | – 14,467 | – 9,936 | – 7,493 |
| EBIT | 36,012 | 38,084 | 17,889 | 19,987 | |
| Finance income | 7 | 25 | 382 | 0 | 261 |
| Finance costs | 7 | – 2,002 | – 476 | – 939 | – 248 |
| EBT | 34,035 | 37,990 | 16,950 | 20,000 | |
| Income taxes | – 10,687 | – 11,742 | – 5,728 | – 6,175 | |
| NET INCOME/LOSS FROM CONTINUING OPERATIONS | 23,350 | 26,248 | 11,222 | 13,825 | |
| Post-tax profit or loss of discontinued operations | 9 | – 1,010 | – 581 | – 777 | – 257 |
| CONSOLIDATED NET PROFIT | 22,340 | 25,667 | 10,445 | 13,569 |
| In € thousand | Note no. | 01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
04/01/– 06/30/2022 |
04/01/– 06/30/20211 |
|---|---|---|---|---|---|
| Earnings per share from continuing operations (basic) |
€4.15 | €4.67 | €2.00 | €2.46 | |
| Earnings per share from continuing operations (diluted) |
€4.15 | €4.67 | €2.00 | €2.46 | |
| Earnings per share (basic) | €3.98 | €4.57 | €1.86 | €2.41 | |
| Earnings per share (diluted) | €3.98 | €4.57 | €1.86 | €2.41 | |
| CONSOLIDATED NET PROFIT | 22,340 | 26,248 | 10,445 | 13,569 | |
| Currency translation differences | – 65 | 416 | 25 | 401 | |
| OTHER COMPREHENSIVE INCOME | – 65 | 416 | 25 | 401 | |
| CONSOLIDATED TOTAL COMPREHENSIVE INCOME | 22,275 | 26,083 | 10,470 | 13,969 |
1 Restated
der New Work SE to June 30, 2022
Assets
| In € thousand | Note no. | 06/30/2022 | 12/31/2021 |
|---|---|---|---|
| Intangible assets | |||
| Purchased software | 3,199 | 4,743 | |
| Internally generated software | 69,098 | 71,153 | |
| Goodwill | 56,145 | 56,145 | |
| Other intangible assets | 3,079 | 3,692 | |
| Property, plant and equipment | |||
| Leasehold improvements | 14,227 | 14,942 | |
| Other equipment, operating and office equipment | 11,933 | 12,174 | |
| Construction in progress | 438 | 618 | |
| Lease assets | 50,376 | 50,280 | |
| Financial assets | |||
| Financial assets at amortized cost | 3,034 | 3,032 | |
| Financial assets at fair value | 29,051 | 30,136 | |
| Other non-financial assets | 426 | 580 | |
| Deferred tax assets | 2,617 | 2,617 | |
| NON-CURRENT ASSETS | 243,623 | 250,112 | |
| Receivables and other assets | |||
| Receivables from services | 5 | 22,339 | 20,637 |
| Contract assets | 4,905 | 4,471 | |
| Other assets | 8,375 | 12,806 | |
| Assets held for sale | 8 | 9,454 | 0 |
| Cash and short-term deposits | |||
| Cash | 87,900 | 86,459 | |
| Third-party cash | 0 | 3,684 | |
| CURRENT ASSETS | 132,973 | 128,057 | |
| 376,596 | 378,169 | ||
| In € thousand | Note no. | 06/30/2022 | 12/31/2021 |
|---|---|---|---|
| Subscribed capital | 9 | 5,620 | 5,620 |
| Capital reserves | 9 | 22,644 | 22,644 |
| Other reserves | 9 | 273 | 338 |
| Retained earnings | 9 | 96,261 | 109,667 |
| EQUITY | 124,798 | 138,270 | |
| Deferred tax liabilities | 21,197 | 21,501 | |
| Contract liabilities | 609 | 352 | |
| Other provisions | 676 | 680 | |
| Lease liabilities | 57,398 | 58,014 | |
| Other liabilities | 3,190 | 4,310 | |
| NON-CURRENT LIABILITIES | 83,070 | 84,857 | |
| Trade accounts payable | 11,631 | 14,446 | |
| Lease liabilities | 6,696 | 7,559 | |
| Contract liabilities | 114,162 | 102,114 | |
| Other provisions | 2,186 | 3,224 | |
| Income tax liabilities | 9,774 | 5,440 | |
| Liabilities in connection with assets held for sale | 9 | 8,186 | 0 |
| Other liabilities | 16,094 | 22,260 | |
| CURRENT LIABILITIES | 168,729 | 155,043 | |
| 376,596 | 378,169 |
|---|---|
der New Work SE for the period from January 1 to June 30, 2022
| In € thousand Note no. |
01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
04/01/– 06/30/2022 |
04/01/– 06/30/20211 |
|---|---|---|---|---|
| Earnings before taxes | 34,035 | 37,990 | 16,950 | 20,000 |
| Amortization and write-downs of internally generated software |
9,593 | 5,223 | 6,039 | 2,781 |
| Depreciation, amortization and impairment losses on other fixed assets |
7,944 | 9,244 | 3,897 | 4,712 |
| Finance income | – 25 | – 382 | 0 | – 261 |
| Finance costs | 2,002 | 476 | 940 | 248 |
| EBITDA | 53,549 | 52,551 | 27,826 | 27,480 |
| Interest received | 25 | 25 | 0 | – 3 |
| Taxes paid | – 6,897 | – 5,703 | – 3,543 | – 3,697 |
| Loss/Profit from disposal of fixed assets | – 23 | – 78 | – 6 | 12 |
| Change in receivables and other assets | – 536 | 241 | 3,302 | – 1,106 |
| Change in liabilities and other equity and liabilities |
– 4,929 | – 821 | – 3,740 | 3,976 |
| Change in contract liabilities | 12,397 | 12,861 | – 9,250 | – 6,812 |
| Cash flows from operating activities of continuing operations |
53,587 | 59,076 | 14,589 | 19,849 |
| Cash flows from operating activities discontinued operations 9 |
– 326 | – 484 | – 158 | – 995 |
| CASH FLOWS FROM OPERATING ACTIVITIES | 53,261 | 58,592 | 14,431 | 18,854 |
| Payment for capitalization of internally generated software |
– 9,793 | – 11,432 | – 4,622 | – 5,484 |
| Payment for purchase of software | – 41 | – 48 | – 33 | 182 |
| Payments for purchase of other intangible assets |
26 | 32 | 10 | 17 |
| In € thousand | Note no. | 01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
04/01/– 06/30/2022 |
04/01/– 06/30/20211 |
|---|---|---|---|---|---|
| Proceeds from the disposal of fixed assets | 71 | 157 | 36 | 41 | |
| Payments for purchase of property, plant and equipment |
– 3,498 | – 10,172 | – 875 | – 6,290 | |
| Proceeds from the sale of financial assets | 4,636 | 0 | 0 | 0 | |
| Acquisition of other financial assets | – 4,994 | 0 | 0 | 0 | |
| Payments for acquisition of consolidated companies (less funds acquired) |
0 | – 2,100 | 0 | – 2,100 | |
| Cash flows from investing activities of continuing operations |
– 13,594 | – 23,563 | – 5,484 | – 13,634 | |
| Cash flows from investing activities of discontinued operations |
9 | – 574 | – 1,247 | – 211 | – 581 |
| CASH FLOW FROM INVESTING ACTIVITIES | – 14,168 | – 24,810 | – 5,695 | – 14,215 | |
| Payment of regular dividend | – 15,737 | – 14,557 | – 15,737 | – 14,557 | |
| Payment of special dividend | – 20,009 | 0 | – 20,009 | 0 | |
| Interest paid | – 224 | – 122 | – 122 | – 72 | |
| Proceeds from lease incentives | 2,805 | 7,204 | 0 | 3,945 | |
| Payment for leases | – 4,466 | – 3,041 | – 2,208 | – 1,549 | |
| Cash flows from financing activities of continuing operations |
– 37,631 | – 10,516 | – 38,076 | – 12,232 | |
| Cash flows from financing activities of discontinued operations |
– 11 | – 2 | – 5 | – 2 | |
| CASH FLOWS FROM FINANCING ACTIVITIES | – 37,643 | – 10,518 | – 38,081 | – 12,234 | |
| Currency translation differences | – 8 | – 7 | – 60 | 17 | |
| Change in cash and cash equivalents | 1,442 | 23,257 | – 29,405 | – 7,580 | |
| Own funds at the beginning of the period | 86,458 | 61,497 | 117,305 | 83,428 | |
| OWN FUNDS AT THE END OF THE PERIOD | 87,900 | 84,754 | 87,900 | 84,754 |
1 Restated
der New Work SE for the period from January 1 to June 30, 2022
| In € thousand | Subscribed capital |
Capital reserves |
Reserve for currency translation differences |
Retained earnings |
Total equity |
|---|---|---|---|---|---|
| AS OF 01/01/2021 | 5,620 | 22,644 | 130 | 84,617 | 113,011 |
| Consolidated net profit | 0 | 0 | 0 | 39,607 | 39,607 |
| Other comprehensive income | 0 | 0 | 208 | 0 | 208 |
| Consolidated total comprehensive income | 0 | 0 | 208 | 39,607 | 39,815 |
| Regular dividend for 2020 | 0 | 0 | 0 | – 14,557 | – 14,557 |
| AS OF 06/30/2021 | 5,620 | 22,644 | 338 | 109,667 | 138,270 |
| AS OF 01/01/2022 | 5,620 | 22,644 | 338 | 109,667 | 138,270 |
| Consolidated net profit | 0 | 0 | 0 | 22,340 | 22,340 |
| Other comprehensive income | 0 | 0 | – 65 | 0 | – 65 |
| Consolidated total comprehensive income | 0 | 0 | – 65 | 22,340 | 22,275 |
| Regular dividend for 2021 | 0 | 0 | 0 | – 15,737 | – 15,737 |
| Special dividend | 0 | 0 | 0 | – 20,009 | – 20,009 |
| AS OF 06/30/2022 | 5,620 | 22,644 | 273 | 96,261 | 124,798 |
for the period from January 1 to June 30, 2022
The registered office of New Work SE (hereafter also referred to as "the Company" or "the Group") is located at Am Strandkai 1, 20457 Hamburg, Germany; the Company is registered at the Amtsgericht (local court) Hamburg under HRB 148078. The Company's parent is Burda Digital SE, Munich, Germany, and the ultimate parent company of New Work SE since December 18, 2012 has been Hubert Burda Media Holding Kommanditgesellschaft, Offenburg, Germany. Hubert Burda Media Holding Kommanditgesellschaft is controlled by Prof. Dr. Hubert Burda, Offenburg, Germany. The next higher-level parent company that prepares consolidated financial statements is Burda Gesellschaft mit beschränkter Haftung, Offenburg, Germany.
New Work SE has been committed to promoting a better working life with a wide range of brands, products and services. Founded as the OpenBC professional network, the Company offers the vast majority of professionals in German-speaking countries their own digital network.
These condensed interim consolidated financial statements for the period ending on June 30, 2022, have been prepared in accordance with the International Financial Reporting Standard for interim financial reporting (IAS 34) as adopted by the EU. The condensed interim consolidated financial statements do not contain all of the information required for full annual consolidated financial statements, and should therefore be read in conjunction with the consolidated financial statements as of December 31, 2021.
The reporting period began on January 1, 2022, and ended on June 30, 2022. The corresponding prior-year period began on January 1, 2021, and ended on June 30, 2021. The interim consolidated financial statements and the interim group management report of the Company were approved for publication on August 11, 2022, by the Management Board.
The accounting policies applied in principle to these condensed interim consolidated financial statements are consistent with those used for the consolidated financial statements as of December 31, 2021. These interim financial statements have not been audited by the auditor, nor have they been subjected to a review.
Preparation of the consolidated financial statements to a limited extent requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities, income and expenses, as well as contingent liabilities. Although these estimates are made in accordance with the best knowledge of management and with due consideration being given to all available knowledge, actual results may differ from these estimates.
The amortization period, the residual values and the amortization method used for finite-lived intangible assets are reviewed regularly. The review of the remaining useful lives in the reporting period revealed that the useful life of the XING platform had been extended by a further twelve months to December 31, 2026.
Unless indicated otherwise, all amounts are rounded to the nearest thousand euros (€ thousand). Rounding differences may occur in the tables due to mathematical reasons.
Due to the discontinuation of the Events business and the intention to sell the segment (application of IFRS 5), the prior-year comparatives in the statement of comprehensive income and the statement of cash flows have been restated accordingly.
| In € thousand | B2C | B2B E-Recruiting | B2B Marketing Solutions | Total segments | New Work Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
|
| Revenues (from third parties) | 45,606 | 49,524 | 98,774 | 78,749 | 8,230 | 7,883 | 152,610 | 136,155 | 152,610 | 136,155 |
| Segment expenses | – 30,647 | – 26,847 | – 30,851 | – 23,937 | – 3,795 | – 2,315 | – 65,293 | – 53,099 | – 65,293 | – 53,099 |
| Segment operating result | 14,959 | 22,677 | 67,923 | 54,811 | 4,435 | 5,568 | 87,317 | 83,056 | 87,317 | 83,056 |
| Other operating income/expenses | – 33,767 | – 30,505 | ||||||||
| EBITDA | 53,549 | 52,551 |
1 Restated
| In € thousand | 01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
|---|---|---|
| D-A-CH | 143,907 | 127,901 |
| International | 8,703 | 8,254 |
| 152,610 | 136,155 |
The Company is not reliant on major customers because a significant percentage of Group revenues is not generated with any single customer.
As was the case as of June 30, 2022, the non-current assets (excl. deferred tax assets and other financial assets) of €235,430thousand (June 30, 2021: €222,892 thousand) are attributable to the D-A-CH region.
1 Restated
The following summary breaks down the primary items of other operating expenses:
| In € thousand | 01/01/– 06/30/2022 |
01/01/– 06/30/20211 |
|---|---|---|
| IT services, management services | 8,209 | 4,889 |
| Server hosting, administration and traffic | 4,276 | 3,751 |
| Occupancy expenses | 1,907 | 1,728 |
| Travel, entertainment and other business expenses | 1,130 | 144 |
| Other personnel expenses | 804 | 690 |
| Training costs | 734 | 605 |
| Payment transaction costs | 728 | 742 |
| Exchange rate losses | 488 | 264 |
| Accounting fees | 338 | 283 |
| Telephone/cell phone/postage/courier | 333 | 376 |
| Financial statements preparation and auditing costs |
309 | 237 |
| Insurance and contributions | 276 | 283 |
| Expenses attributable to prior periods | 223 | 303 |
| Legal consulting fees | 202 | 399 |
| Supervisory Board remuneration | 162 | 118 |
| Office supplies | 122 | 63 |
| Rents/leases | 52 | 57 |
| Other | 101 | 142 |
| TOTAL | 20,398 | 15,076 |
Impairment losses (including reversals) on financial assets and contract assets include expenses for bad debts of €1,047 thousand (previous year: €1,529thousand) as well as income from reversals of €42thousand (previous year: €76thousand).
Receivables from services are impaired as follows:
| 06/30/2022 | Not yet due | Past due < 30 days |
Past due < 90 days |
Past due > 90 days |
Total |
|---|---|---|---|---|---|
| Impairment ratio | 1.5% | 6.3% | 12.7% | 39.2% | 7.5% |
| Gross carrying amount (in € thousand) | 9,117 | 8,897 | 4,858 | 1,275 | 24,146 |
| Impairment (in € thousand) | – 136 | – 556 | – 615 | – 500 | – 1,807 |
| 12/31/2021 | Not yet due | Past due < 30 days |
Past due < 90 days |
Past due > 90 days |
Total |
|---|---|---|---|---|---|
| Impairment ratio | 1.9% | 8.1% | 13.6% | 39.6% | 7.9% |
| Gross carrying amount (in € thousand) | 10,563 | 8,438 | 1,761 | 1,651 | 22,413 |
| Impairment (in € thousand) | – 202 | – 679 | – 240 | – 654 | – 1,775 |
The impairment figure includes both specific valuation allowances and anticipated defaults of the total receivables from services.
1 Restated
Notes to the interim consolidated financial statements To our shareholders Interim Group management report Interim consolidated financial statements Other information
Effective at the start of the 2022 financial year, the useful life of internally generated software was extended by a further twelve months to December 31, 2026. This led to the recognition of lower amortization of €1,219thousand than as stipulated in the previous amortization schedule, which will be recognized in later periods.
Finance costs mainly include €1,121thousand in remeasurement expenses from available-for-sale securities (previous year: €357 thousand) and €298 thousand (previous year: €327thousand) from the unwinding of discounts on lease liabilities.
The Management Board decided to launch a program in the reporting period to look for a buyer for the ticketing business unit in the Events segment. In compliance with IFRS 5, this unit is presented as available for sale. The Events Marketplace unit will also be discontinued and presented as a discontinued operation in accordance with IFRS 5. The prior-year figures in the consolidated statement of comprehensive income and the consolidated statement of cash flows have been restated accordingly to present the discontinued operations separately from continuing operations.
Post-tax profit or loss of discontinued operations contains revenues of €3,035 thousand (prior-year period: €2,839thousand) and expenses of €4,043 thousand (prior-year period: €4,261 thousand). EBITDA of the discontinued operations amounts to €316thousand (prior-year period: €277thousand).
The assets held for disposal in the amount of €9,454 thousand mainly comprise clients' funds of €6,754thousand that exclusively relate to the ticketing business. Accordingly, related liabilities in connection with the ticketing business amounting to €8,268 thousand include liabilities to event organizers in the amount of €7,886 thousand.
As of June 30, 2022, the Group had share capital of €5,620,435 (December 31, 2021: €5,620,435). As previously, the Company does not hold any treasury shares.
Based on a resolution adopted by the Annual General Meeting on June 1, 2022, a regular dividend of €15.7million, or €2.80, (previous year: €2.59) per share and a special dividend of €20.0million, or €3.56, (previous year: €0) was distributed.
Own cash and available-for-sale securities of €116,951thousand as of June 30, 2022, and the Group's cash-generative business model enable the Company to pay dividends on a regular basis without changing its business strategy, which is aimed at achieving growth.
Please refer to the consolidated financial statements as of December 31, 2021, for further information about related parties. From the perspective of the Group, no significant changes with respect to the Burda Group occurred until June 30, 2022.
There were no claims against members of the Management Board and the Supervisory Board as of June 30, 2022.
The Group acquired various securities in financial year 2017 for the purpose of investing excess liquidity. The fair values of these instruments, all of which are assigned to Level 1, correspond to their notional values multiplied with the prices quoted as of June 30, 2022.
Notes to the interim consolidated financial statements To our shareholders Interim Group management report Interim consolidated financial statements Other information
The following classes of financial instruments existed as of
the reporting date:
| In € thousand Measurement category 1 |
06/30/2022 | 12/31/2021 | |
|---|---|---|---|
| Non-current financial assets at amortized cost | Amortized cost | 3,034 | 3,032 |
| Non-current financial assets at fair value | FLFVtPL | 29,051 | 30,136 |
| Current receivables from services | Amortized cost | 22,339 | 20,637 |
| Current other assets | Amortized cost | 8,375 | 12,806 |
| Cash | Amortized cost | 87,900 | 90,143 |
| Current trade accounts payable | Amortized cost | 11,631 | 14,446 |
| Current other liabilities | Amortized cost |
1 FLFVtPL = Financial liabilities at fair value through profit or loss
No events which will have a significant impact on the course of business of the Group have occurred since the end of the reporting period.
Responsibility statement To our shareholders Interim Group management report Interim consolidated financial statements Other information
To the best of our knowledge, and in accordance with the applicable reporting standards for interim financial reporting, the condensed interim consolidated financial statements comply with the principles of proper accounting and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group in the remaining months of the financial year.
Hamburg, August 11, 2022
The Management Board
Petra von Strombeck Ingo Chu
Frank Hassler Peter Opdemom
Jens Pape
For press inquiries and current information,
Financial calendar Publishing information and contact
please contact:
Marc-Sven Kopka
Corporate Communications
Phone: + 49 40 41 91 31 – 763 Fax: + 49 40 41 91 31 – 44 Email: [email protected]
Publication of the half-year financial report August 11, 2022 Publication of the Q3 financial report November 7, 2022
www.new-work.se/en/investor-relations (New Work SE – Investor Relations Website)
Twitter: New_Work_SE_IR (Information and news related to the capital markets)
Twitter: NewWork_SE (Topics and news related to the Company in general – German only)
For Annual Reports, Interim Reports and current financial information, please contact:
Am Strandkai 1 20457 Hamburg Germany Phone: + 49 40 41 91 31 –793 Fax: + 49 40 41 91 31 –44
Patrick Möller (Vice President Investor Relations)
Silvester Group www.silvestergroup.com
Photo credits New Work SE/Raimar von Wienskowski
Rounding differences may occur.
This interim financial report is available in both German and English. In the event of diversity in interpretation, the German version shall prevail. Both versions and further press information are available for download at www.new-work.se/en/investor-relations.
Am Strandkai 1 20457 Hamburg Germany Phone + 49 40 41 91 31–793
Fax + 49 40 41 91 31– 44
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