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New Work SE Interim / Quarterly Report 2024
303_10-q_2024-05-08_813b5f19-e80c-4e1f-a80d-910205bf087a.pdf
Interim / Quarterly Report
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Q1 2024 Quarterly statement
January 1 to March 31, 2024
Consolidated key figures
| Unit | Q1 2024 | Q1 2023 | Q4 2023 | |
|---|---|---|---|---|
| Revenues | in € million | 68.2 | 75.9 | 78.2 |
| Pro forma revenues | in € million | 68.2 | 75.9 | 78.2 |
| EBITDA | in € million | – 15.2 | 15.5 | 27.6 |
| Pro forma EBITDA | in € million | 9.0 | 17.9 | 28.1 |
| EBITDA margin | in % | – 22 | 20 | 35 |
| Pro forma EBITDA margin | in % | 13 | 24 | 36 |
| Net profit/loss for the period | in € million | – 16.9 | 7.0 | 6.3 |
| Pro forma net profit/loss for the period | in € million | 1.1 | 8.4 | 6.4 |
| Earnings per share (diluted) | in € | – 3.01 | 1.25 | 1.12 |
| Pro forma earnings per share (diluted) | in € | 0.20 | 1.50 | 1.14 |
| Cash flow from operations | in € million | 7.5 | 33.7 | 4.1 |
| Equity | in € million | 128.3 | 153.2 | 145.2 |
| XING platform members, D-A-CH | in million | 22.4 | 21.7 | 22.1 |
| InterNations members | in million | 5.0 | 4.7 | 5.0 |
| kununu workplace insights | in million | 11.2 | 8.8 | 10.3 |
| B2B E-Recruiting customers, D-A-CH (subscriptions) | number | 14,254 | 14,493 | 14,255 |
| Employees (FTE) | number | 1,460 | 1,894 | 1,542 |
Contents
Our sites
- 3 To our shareholders
- 8 Interim Group management report
- 17 Interim consolidated financial statements
- 26 Other information
01
To our shareholders 4 Company profile
Company profile
New Work SE is committed to a better world of work. With its strong brands such as XING, the largest talent pool, and kununu, the leading employer review platform in the D-A-CH region, it competes to be the most important recruiting partner in the German-speaking world. It brings candidates and companies together, enabling employees to lead more satisfying professional lives and helping businesses to achieve greater success by hiring the right talent. Listed since 2006, the Company is headquartered in Hamburg and employs a total of 1,460 staff at several locations including also Berlin, Vienna and Porto. For more information, see → www.new-work.se and → nwx.new-work.se
Strong brands
Four brands, one goal: to shape the future of work in the interests of people.
Letter from the CEO
Petra von Strombeck CEO of New Work SE
Dear shareholders,
The first quarter of the year was a period of reorganization for New Work SE.
Firstly, as announced, we introduced comprehensive restructuring measures. Making decisions like these is always extremely painful, no matter how necessary they may be. The good news, however, is that we had already achieved 85 percent of our intended staff reductions in terms of financial value by the end of the first quarter thanks to the very positive response to our voluntary redundancy scheme.
"In future, our B2B sales will focus on our strong brands XING and kununu."
We also began to allocate our sales team to our robust XING and kununu brands so that they can focus their efforts entirely on B2B sales of these products. While this process will still take several months to complete, it means that our sales units can operate even more effectively in the market and will further reinforce our position as a leading recruiting partner to HR departments.
Our XING brand is also in the middle of a transformation process. Of course, repositioning one of Germany's bestknown online brands is an undertaking that cannot happen overnight and requires significant investment. We have, however, made these investments on a substantial scale to position XING as a network primarily focused on jobs and on reaching new target groups. At the end of last year, XING launched its biggest advertising campaign to date, with the heart of this campaign playing out during the first quarter. The brand is also actively seeking to reach new, younger target groups as the main sponsor of the newly founded Baller League.
kununu also worked vociferously and successfully to draw attention to its brand in Germany's most densely populated state, North Rhine-Westphalia, during the first quarter to continue boosting the brand's growth. Thanks to the consistently encouraging development of its workplace insights, which grew by 28 percent to 11.2 million in the first quarter of 2024, kununu not only consolidated its market-leading position in German speaking countries but is also the leader in the D-A-CH region based on salary data alone, with more than 4 million pieces of this data at its disposal. This rapid increase in data points provides a boost in terms of quantity, while the topicality of the data also ensures that the quality of these insights is up-to-date.
To our shareholders Interim Group management report Interim consolidated financial statements Other information
The initiatives and activities outlined before are essential and represent the consistent implementation of our strategy. Unfortunately, the current macroeconomic situation is weighing on our financial key performance indicators instead of giving us a tailwind.
"Despite the challenging environment, we expect pro forma EBITDA of €55-65 million for the year as a whole."
Revenues in the HR Solutions & Talent Access segment fell by 6 percent to just over €50 million, primarily due to the decline in published job advertisements as a result of the current recession in the German economy but also as a result of gradually scaling down our Honeypot business. As expected, the B2C business contracted by 18 percent to just under €16 million due to our strategic shift to focusing entirely on monetizing via our HR solutions. Revenues in our smallest segment, B2B Marketing Solutions, dropped by 36 percent to €2.0 million. At €68 million, total revenues were 10 percent down on the prior-year quarter as expected.
Investments in marketing and in implementing our strategy in a difficult macroeconomic environment weighed on pro forma EBITDA adjusted for restructuring costs, which was 50 percent lower than the previous year's figure at €9 million, despite strict cost management applied in the past twelve months. As a result, adjusted pro forma consolidated net profit slumped by 87 percent to €1 million. Despite the challenging macroeconomic environment, we are confirming our adjusted forecast from January, and anticipate pro forma EBITDA of €55-65 million.
As you can see, the situation is a challenging one. As a Hamburg-based company, however, we know that it is particularly important to remain on course when facing strong headwinds – and that's exactly what we're doing. Although our transformation will take a little longer yet, we plan to emerge stronger from it and return to the same levels of growth we have enjoyed in the past.
Until then, thank you for placing your trust in us. We hope you will continue to give us your support.
Yours sincerely,
Petra von Strombeck CEO
The New Work SE shares
Basic data about the New Work shares
| Number of shares | 5,620,435 |
|---|---|
| Share capital in € | 5,620,435 |
| Share type | Namensaktien |
| IPO | 12/07/2006 |
| Ticker | NWO |
| WKN | NWRK01 |
| ISIN | DE000NWRK013 |
| Transparency level | Prime Standard |
| Sector | Software |
Key data on the share at a glance
| Q1 2024 | Q1 2023 | |
|---|---|---|
| XETRA closing price at the end of the period |
€67.40 | €167.20 |
| High | €75.20 | €184.40 |
| Low | €51.90 | €149.20 |
| Market capitalization at the end of the period |
€379 million | €940 million |
| Enterprise value at the end of the period |
€269 million | €794 million |
| Average trading volume per day (XETRA & Tradegate) |
5,182 | 1,512 |
Shareholder structure in March 2024 1
1 based on the voting rights notifications sent to New Work SE
Share price performance vs. SDAX in the first three months of 2024
Analyst recommendations in March 2024
| Broker | Analyst | Recommendation Price target | |
|---|---|---|---|
| Berenberg Bank | Wolfgang Specht | Hold | €64 |
| Deutsche Bank | Nizla Naizer | Hold | €70 |
| Hauck & Aufhäuser | Finn Kemper | Hold | €51 |
| Warburg Research | Marius Fuhrberg | Hold | €68 |
02
Interim Group management report
for the period from January 1 to March 31, 2024
Net assets, financial position and results of operations of the Group
Results of operations
Revenues
In the first quarter of 2024, the Group's revenues decreased by 10 percent from €75.9 million to €68.2 million. It is a trend we expected and forecast. This reduction is primarily attributable to the decline in B2C revenues (– 18 percent) from Premium memberships as part of XING's realignment as well as a slight fall in revenues in the HR Solutions & Talent Access segment (– 6 percent).
The decline in the HR Solutions & Talent Access segment is mainly due to the persistently weak situation in the labor market since early 2023 as well as the discontinuation of Honeypot's products and services.
Earnings per share Pro forma earnings per share
To our shareholders Interim Group management report Interim consolidated financial statements Other information
Other operating income
Other operating income rose sharply to €3.8 million during the period under review (Q1 2023: €0.7 million). This increase largely stems from the revaluation of the lease for the Company's headquarters (NEW WORK Harbour) as a result of the planned move to a new office building in Q4 2025.
Own work capitalized
Own work capitalized in the reporting period amounted to €5.1 million, which is considerably down on the previous year (Q1 2023: €7.5 million) This item is composed of personnel expenses, freelancer costs and ancillary costs. The decrease is mainly due to the year-on-year reduction of the workforce.
Personnel expenses
Personnel expenses increased significantly from €43.8 million to €57.5 million during the period under review. This rise is primarily attributable to the restructuring program unveiled on January 11, 2024, and the associated reduction in headcount. This resulted in a non-recurring increase in personnel expenses of €20.3 million. Excluding this non-recurring effect, personnel expenses were markedly lower in the first quarter of 2024 at €37.2 million due to the consistent cost management efforts begun in 2023 and weaker demand.
Marketing expenses
As communicated on January 11, 2024, marketing expenses increased by around 48 percent year-on-year to €19.4 million (Q1 2023: €13.1 million). As part of the repositioning of XING, we significantly increased our investments in branding and launched a larger TV campaign as well as additional online marketing activities.
kununu also rolled out a brand campaign on digital billboards and information screens across Germany's largest cities with the slogan "Erst kununu, dann bewerben" ("Check kununu first, then apply").
Other operating expenses
Other operating expenses rose from €11.5 million to €15.1million during the period under review. This increase is due to €3.9 million in non-recurring expenses associated with the Group restructuring and the reduction in headcount announced in January in this context. Excluding this non-recurring effect, other operating expenses were actually slightly down on the previous year's figure of €11.4 million at €11.3 million.
The notes to the interim consolidated financial statements include a detailed table of all items reported under other operating expenses.
Impairment of financial assets and contract assets
Impairment losses (including reversals) on financial assets and contract assets include expenses for bad debts of €0.3 million (previous year: €0.4 million).
EBITDA
During the period under review, we recorded a negative EBITDA of €– 15.2 million (previous year: €15.5 million) due to non-recurring expenses of €24.2 million associated with the restructuring of the Group.
Pro forma EBITDA adjusted for non-recurring restructuring costs amounted to €9.0 million after €17.9 million (pro forma) in the previous year. This decline is primarily attributable to the anticipated fall in revenues as well as the deliberate increase in marketing expenses as part of the realignment of XING.
Depreciation, amortization and impairment losses
At €8.6million, depreciation, amortization and impairment losses were higher than the previous year's figure of €7.2 million. This figure also includes impairment losses associated with the restructuring with the Group totaling €2.7 million. Excluding this non-recurring item, depreciation and amortization totaled €5.8 million, significantly less than the previous year's figure of €7.2 million.
PPA depreciation, amortization and impairments losses amounted to €1.1 million (previous year: €0.3 million). This figure includes impairment losses of €1.0 million resulting from the organizational restructuring of the Group (previous year: €0.0 million).
Financial
At €0.5 million, the financial result in the reporting period was slightly higher than the previous year's figure of €0.4million. This development is mainly due to an increase in interest income from short-term investments in liquid funds. Income from the revaluation of investments measured at fair value was almost unchanged from the previous year at €0.2 million (previous year: €0.4 million).
Taxes
Current taxes are determined by the Group companies based on the tax laws applicable in their country of domicile. We recorded tax income of €6.3 million in the first quarter, compared to a tax expense of €1.6 million in the previous year. This tax income was caused by deferred tax assets recognized for the tax losses of New Work SE.
Consolidated net profit and earnings per share
Consolidated net profit in the reporting period amounted to €– 16.9 million, compared with €7.0 million in the previous year. This gives rise to earnings per share of €– 3.01, compared with €1.25 in the prior-year period. The decline is due to non-recurring expenses incurred in connection with the Group's restructuring in the first quarter.
The pro forma profit adjusted for the non-recurring expenses mentioned is €1.1 million, compared with a pro forma profit of €8.4 million for the prior-year period. Pro forma earnings per share fell accordingly from €1.50 to €0.20 in the reporting period.
Pro forma reconciliation Q1 2024
| In € million | P&L, not adjusted 01/01/2024 – 03/31/2024 |
Remeasurement of non-operating financial instruments |
Restructuring expenses |
P&L, pro forma 01/01/2024 – 03/31/2024 |
P&L, pro forma 01/01/2023 – 03/31/2023 |
Change in % |
Change Abs. |
|---|---|---|---|---|---|---|---|
| Revenues | 68.2 | 68.2 | 75.9 | –10 | –7.7 | ||
| Other operating income | 3.8 | 3.8 | 0.7 | 404 | 3.0 | ||
| Other own work capitalized | 5.1 | 5.1 | 7.5 | – 32 | – 2.4 | ||
| Personnel expenses | – 57.5 | 20.3 | – 37.2 | – 41.4 | – 10 | 4.2 | |
| Marketing expenses | – 19.4 | – 19.4 | – 13.1 | 48 | – 6.3 | ||
| Other operating expenses | – 15.1 | 3.9 | – 11.3 | – 11.4 | – 1 | 0.1 | |
| Impairment losses on financial assets and contract assets |
– 0.3 | – 0.3 | – 0.3 | – 9 | 0.0 | ||
| EBITDA | –15.2 | 24.2 | 9.0 | 17.9 | –50 | –8.9 | |
| Depreciation, amortization and impairment losses | – 8.6 | 2.7 | – 5.8 | – 7.2 | – 19 | 1.4 | |
| EBIT | –23.8 | 26.9 | 3.2 | 10.7 | –71 | –7.6 | |
| Financial result | 0.5 | – 0.3 | 0.0 | 0.2 | 0.0 | > 100 | 0.3 |
| EBT | –23.2 | –0.3 | 26.9 | 3.4 | 10.7 | –68 | –7.3 |
| Taxes | 6.3 | – 0.1 | – 8.5 | – 2.3 | – 2.3 | – 1 | 0.0 |
| Consolidated net profit | –16.9 | –0.4 | 18.4 | 1.1 | 8.4 | –87 | –7.3 |
| Earnings per share in € | –3.01 | –0.07 | 3.3 | 0.20 | 1.50 | –87 | –1.3 |
Pro forma reconciliation Q1 2023
| In € million | P&L, not adjusted 01/01/2023 – 03/31/2023 |
Remeasurement of non-operating financial instruments |
Restructuring expenses |
P&L, pro forma 01/01/2023 – 03/31/2023 |
|---|---|---|---|---|
| Revenues | 75.9 | 75.9 | ||
| Other operating income | 0.7 | 0.7 | ||
| Other own work capitalized | 7.5 | 7.5 | ||
| Personnel expenses | – 43.8 | 2.4 | – 41.4 | |
| Marketing expenses | – 13.1 | – 13.1 | ||
| Other operating expenses | – 11.5 | 0.0 | – 11.4 | |
| Impairment losses on financial assets and contract assets |
– 0.3 | – 0.3 | ||
| EBITDA | 15.5 | 2.4 | 17.9 | |
| Depreciation, amortization and impairment losses | – 7.2 | – 7.2 | ||
| EBIT | 8.3 | 2.4 | 10.7 | |
| Financial result | 0.4 | – 0.4 | 0.0 | |
| EBT | 8.7 | –0.4 | 2.4 | 10.7 |
| Taxes | – 1.6 | 0.1 | – 0.8 | – 2.3 |
| Consolidated net profit | 7.0 | –0.3 | 1.6 | 8.4 |
| Earnings per share in € | 1.25 | –0.05 | 0.29 | 1.50 |
Net assets
Total assets fell by €29.5 million (– 8.5 percent) to €319.0 million compared to December 31, 2023. The €31.3 million decrease in non-current assets to €180.6 million was offset by a €1.8 million increase in current assets to €138.4 million.
The decline in non-current assets is primarily attributable to the €28.7 million fall in lease assets. This was mainly due to revaluation of the lease for NEW WORK Harbour resulting from the planned move to a new office building at the end of 2025 as well as the subletting of some of the space in NEW WORK Harbour from January 2024. In addition to depreciation, this leasing and subletting resulted in a €1.5 million reduction in leasehold improvements.
As a result of the restructuring program and associated realignment of the Group announced in January, other intangible assets declined due to impairment losses on PPA assets totaling €1.0 million.
The increase in current assets is primarily attributable to higher other assets (€+ 4.8 million), which includes receivables from subletting and deferred payments for new office space of €2.6 million (previous year: €0.0 million).
The equity ratio declined from 41.7 percent to 40.2 percent as of March 31, 2024, due to negative earnings in Q1 and restructuring provisions (€21.0 million), despite lower lease liabilities resulting from the aforementioned leasing (€– 32.0 million).
Financial position
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. Cash and cash equivalents fell by a total of €0.6 million in the first quarter of 2024, remaining at a high level at €92.5 million as at March 31, 2024. The change in cash and cash equivalents was due to the following factors:
Cash inflows from operating activities amounted to €7.5 million. The negative EBITDA (€– 15.2 million) adversely impacted by the restructuring carried out in Q1 was offset by cash flows from changes in working capital totaling €26.4 million.
Cash outflows from investing activities totaling €5.2 million (previous year: €9.0 million) were dominated by payments for internally generated software of €5.1 million (previous year: €7.5 million). In addition, payments to acquire property, plant and equipment decreased from €1.7 million to €0.2 million year-on-year.
The negative cash flows from financing activities of €2.9 million (previous year: €2.5 million) resulted from lease payments of €1.9 million (previous year: €2.5 million) as well as non-recurring payments in 2024 associated with the lease for the Company's new headquarters from Q4 2025 amounting to €1.0 million.
Segment performance
HR Solutions & Talent Access segment revenues in € million
Subscription customers
HR Solutions & Talent Access segment Revenue in the HR Solutions & Talent Access segment fell by 6 percent to €50.4 million during the period under review (previous year: €53.3 million). This decline is mainly due to the persistently weak situation in the labor market since early 2023 as well as the discontinuation of Honeypot's products and services. The weak market environment for recruiting solutions in particular was also the reason for the slight fall in the contract customer base (B2B subscription customers) from 14,493 in the previous year to 14,254 customers at the end of March 2024. For example, the BA-X Index – an indicator of labor demand in Germany – has deteriorated significantly from 124 points in March 2023 to 113 points in March 2024.
Segment EBITDA decreased from €7.7 million in the prior-year quarter to €– 12.6 million. This is primarily due to the non-recurring restructuring costs incurred in this segment (€12.3 million of a total of €24.2 million). The slight decline in revenues caused by weakness in the labor market also had a corresponding negative impact on operating profit in the segment. In addition, we invested significantly more in marketing in the first quarter in particular in order to communicate the XING platform's transformation from a social network to a job network.
BA-X Index labor demand trend
Talent Access business records strong growth
New Work primarily provides access to potential candidates and talented professionals via its two end customer destinations → www.kununu.com and → www.xing.com.
kununu becomes market leader on salary data
kununu, the leading employer review platform in the D-A-CH region, made a strong start to 2024. The platform consolidated its market-leading position in German speaking countries as workplace insights – consisting of employer ratings, salary data and corporate culture information – increased by 28 percent to over 11 million. kununu also reached 4 million pieces of salary data for the first time at the end of the first quarter, making it the leading provider in this subsegment.
kununu launches major gender pay gap campaign
Ahead of Equal Pay Day, which took place in Germany on March 6, kununu launched several initiatives to highlight the average difference in salary between men and women. kununu users can take advantage of the Gender Pay Gap Calculator to find out how big the average difference in salary is in their sector and region. A data page also provides an overview of average differences in salary in each sector and role, as well as by experience.
→ https://campaigns.kununu.com/gender-pay-gap/
New kununu brand campaign
kununu launched its new brand campaign in February with the slogan "Erst kununu, dann bewerben" ("Check kununu first, then apply"). The campaign is being rolled out across analog and digital billboards and information screens in Düsseldorf, Cologne, Duisburg, Essen and Dortmund as well as via digital channels, radio and social media. The aim of the campaign is to encourage users to gain an insight into their workplace (regardless of the employer or salary) before making any decisions.
XING's transformation into a job network pays off for recruiters, with more clicks on job advertisements and a higher response rate
XING's transformation from a broader professional network to a job network was the primary strategic focus during the period under review. This realignment in its 20th year of existence is XING's response to a changing market situation created by demographic shifts and a shortage of skilled workers. Right at the start of the year, XING ushered in a new era of jobseeking on XING with the Company's biggest brand campaign to date, reinforcing the transformation to a job network it began in the previous year. This offers several advantages for employers, with more potential candidates and more attention paid to job advertisements and active sourcing initiatives.
Over the past few months, we have introduced numerous new tools for XING users that make XING's new strategic focus and benefits of a data-driven, transparent and personalized job search with network functionalities visible and tangible.
Using AI in the process, we redesigned the search result lists and improved the filter options, making them more accessible.
We significantly improved the "Notifications Center", focused on content that helps XING users find the right job and leverage their job network.
We also refined "Preferences" by redesigning the overview page to make setting preferences even easier.
The new focus resulted in around 86 percent more visits to the XING Jobs portal compared to the previous year. The number of registered members also grew from 21.7 million members in the previous year to 22.4 million during the period under review.
The numerous changes for XING users are having a positive impact on the work of recruiters as well. Active sourcing, for example, is more successful, with the chance of promising talent responding to an active approach rising by around 50 percent. On the product side, additional new functions help to give employers on XING more visibility. For example, recruiters can now activate the "Recruiting" badge on their personal profile and add more selection criteria such as specific skills or areas of work. This member profile is shown in the "Your network" area to XING users who could potentially meet the previously specified criteria. The badge is displayed automatically on the profiles of XING TalentManager customers.
kununu workplace insights (D-A-CH) in million
B2C segment
B2C segment revenues in € million
Member growth (D-A-CH) in million
Segment revenues decreases as expected
In the B2C segment, we report revenues from the sale of paid memberships for end customers.
Revenues saw the expected year-on-year decline to €15.9 million from €19.5 million during the period under review.
The decrease is mainly due to a lower number of Premium members. By pursuing a strategy of enhancing access to talent and repositioning its platform from a professional social network to a job network, XING is shifting its focus away from directly monetizing B2C users via paid subscriptions. Our strategic focus is on monetizing talent access through our HR Solutions & Talent Access segment.
Segment profitability was down 57 percent on the previous year's figure with EBITDA of €4.4 million (previous year: €10.3 million). The decrease is mainly due to lower revenues. The B2C segment also includes restructuring costs of €3.6 million.
B2B Marketing Solutions segment
B2B Marketing Solutions segment revenues in € million
Revenues in the B2B Marketing Solutions segment in the reporting period fell by 36 percent to €2.0 million (previous year: €3.1 million).
Accordingly, segment EBITDA also declined to €– 1.5 million due to the drop in revenues (previous year: €– 0.1million). The B2B Marketing Solutions segment also includes restructuring costs of €1.2 million.
03
Interim consolidated financial statements
for the period from January 1 to March 31, 2024
- 18 Consolidated statement of comprehensive income
- 19 Consolidated statement of financial position
- 20 Consolidated statement of cash flows
- 21 Consolidated statement of changes in equity
- 22 Notes to the interim consolidated financial statements
Consolidated statement of comprehensive income
of New Work SE
for the period from January 1 to March 31, 2024
Consolidated statement of comprehensive income
| In € thousand | Note no. 01/01–03/31/2024 01/01–03/31/2023 | ||
|---|---|---|---|
| Continuing operations | |||
| Service revenues | 2 | 68,244 | 75,927 |
| Other operating income | 3 | 3,764 | 747 |
| Other own work capitalized | 5,135 | 7,516 | |
| Personnel expenses | 4 | – 57,477 | – 43,761 |
| Marketing expenses | – 19,398 | – 13,130 | |
| Other operating expenses | 5 | – 15,148 | – 11,459 |
| Impairment losses on financial assets | 6 | – 312 | – 342 |
| EBITDA | –15,191 | 15,498 | |
| Depreciation, amortization and impairment losses | 7 | – 8,569 | – 7,206 |
| EBIT | –23,760 | 8,292 | |
| Finance income | 8 | 635 | 544 |
| Finance costs | 8 | – 118 | – 155 |
| EBT | –23,243 | 8,681 | |
| Income taxes | 6,339 | – 1,645 | |
| Net income/loss from continuing operations | –16,905 | 7,036 | |
| Post-tax profit or loss of discontinued operations | 0 | 55 | |
| CONSOLIDATED NET PROFIT | –16,905 | 7,091 |
| In € thousand | Note no. 01/01–03/31/2024 01/01–03/31/2023 | |
|---|---|---|
| Eearnings per share | ||
| Earning per share from continuing operations (basic) | €– 3.01 | €1.25 |
| Earning per share from continuing operations (diluted) | €– 3.01 | €1.25 |
| Earnings per share (basic) | €– 3.01 | €1.26 |
| Earnings per share (diluted) | €– 3.01 | €1.26 |
| CONSOLIDATED NET PROFIT | –16,905 | 7,091 |
| Currency translation differences | 0 | 2 |
| OTHER COMPREHENSIVE INCOME | 0 | 2 |
| CONSOLIDATED TOTAL COMPREHENSIVE INCOME | –16,905 | 7,093 |
Consolidated statement of financial position
319,005 348,547
of New Work SE as of March 31, 2024
Assets
| In € thousand | Note no. | 03/31/2024 | 12/31/2023 |
|---|---|---|---|
| Intangible assets | |||
| Purchased software | 7 | 1,318 | 1,630 |
| Internally generated software | 7 | 69,331 | 68,747 |
| Goodwill | 7 | 56,145 | 56,145 |
| Other intangible assets | 7 | 783 | 1,823 |
| Property, plant and equipment | |||
| Leasehold improvements | 7 | 6,287 | 7,826 |
| Other equipment, operating and office equipment | 7 | 11,026 | 11,985 |
| Construction in progress | 7 | 23 | 0 |
| Lease assets | 7 | 13,557 | 42,233 |
| Financial assets | |||
| Financial assets at amortized cost | 11 | 2,823 | 2,823 |
| Financial assets at fair value | 11 | 17,386 | 17,226 |
| Deferred tax assets | 1,893 | 1,435 | |
| NON-CURRENT ASSETS | 180,571 | 211,873 | |
| Receivables and other assets | |||
| Receivables from services | 21,084 | 20,477 | |
| Income tax receivables | 3,208 | 6,283 | |
| Other assets | 21,618 | 16,836 | |
| Cash and short-term deposits | |||
| Cash | 92,524 | 93,077 | |
| CURRENT ASSETS | 138,434 | 136,673 |
Equity and liabilities
| In € thousand | Note no. | 03/31/2024 | 12/31/2023 |
|---|---|---|---|
| Subscribed capital | 9 | 5,620 | 5,620 |
| Capital reserves | 9 | 22,644 | 22,644 |
| Other reserves | 9 | 646 | 646 |
| Retained earnings | 9 | 99,362 | 116,266 |
| EQUITY | 128,272 | 145,176 | |
| Deferred tax liabilities | 4,508 | 13,044 | |
| Contract liabilities | 1,233 | 1,299 | |
| Other provisions | 815 | 815 | |
| Lease liabilities | 15,509 | 48,254 | |
| Other liabilities | 1,281 | 1,063 | |
| NON-CURRENT LIABILITIES | 23,346 | 64,475 | |
| Trade accounts payable | 13,739 | 11,339 | |
| Lease liabilities | 5,544 | 4,833 | |
| Contract liabilities | 106,152 | 97,251 | |
| Other provisions | 24,183 | 3,783 | |
| Income tax liabilities | 1,829 | 3,586 | |
| Other liabilities | 15,939 | 18,104 | |
| CURRENT LIABILITIES | 167,386 | 138,896 |
| 319,005 | 348,547 |
|---|---|
Consolidated statement of cash flows
of New Work SE
for the period from January 1 to March 31, 2024
Consolidated statement of cash flows
| In € thousand | Note no. 01/01/ –03/31/2024 01/01/ –03/31/2023 | ||
|---|---|---|---|
| Earnings before taxes from continuing operations | – 23,243 | 8,681 | |
| Earnings before taxes from discontinued operations | 0 | 56 | |
| Earnings before taxes | – 23,243 | 8,737 | |
| Amortization and impairment losses on internally gen erated software |
7 | 4,551 | 3,257 |
| Depreciation, amortization and impairment losses on other fixed assets |
7 | 4,017 | 4,025 |
| Finance income | 8 | – 635 | – 544 |
| Finance costs | 8 | 118 | 155 |
| EBITDA | – 15,191 | 15,630 | |
| EBITDA from discontinued operations | 0 | 132 | |
| EBITDA FROM CONTINUING OPERATIONS | – 15,191 | 15,498 | |
| Interest received | 475 | 114 | |
| Taxes paid | – 1,337 | – 3,633 | |
| Non-cash expenses/income | – 2,897 | 0 | |
| Profit/loss from disposal of fixed assets | 4 | 50 | |
| Change in receivables and other assets | – 4,142 | 1,415 | |
| Change in liabilities and other equity and liabilities | 21,710 | 4,391 | |
| Change in contract liabilities | 8,835 | 15,165 | |
| Elimination of XING Events third-party obligation | 0 | 804 | |
| Cash flows from operating activities | 7,456 | 33,936 | |
| Cash flows from operating activities from discontinued operations |
0 | 221 | |
| CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS |
7,456 | 33,715 |
| In € thousand | Note no. 01/01/ –03/31/2024 01/01/ –03/31/2023 | |
|---|---|---|
| Payment for capitalization of internally generated software |
– 5,135 | – 7,516 |
| Payment for purchase of software | – 6 | 16 |
| Proceeds from the disposal of fixed assets | 151 | 63 |
| Payments for purchase of property, plant and equipment |
– 192 | – 1,673 |
| Cash flows from investing activities | – 5,182 | – 9,108 |
| Cash flows from investing activities from discontinued operations |
0 | – 77 |
| – 5,182 | – 9,031 | |
| Payment for leases | – 2,911 | – 2,469 |
| Cash flows from financing activities | – 2,911 | – 2,469 |
| Cash flows from financing activities from discontinued operations |
0 | 0 |
| – 2,911 | – 2,469 | |
| 85 | – 60 | |
| 93,077 | 94,800 | |
| CASH FLOW FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS Currency translation differences Own funds at the beginning of the period Change in cash and cash equivalents OWN FUNDS AT THE END OF THE PERIOD Third-party funds at the beginning of period Change in third-party cash and cash equivalents OWN FUNDS AT THE END OF THE PERIOD |
– 552 | 22,299 |
| 92,524 | 117,099 | |
| 0 | 3,504 | |
| 0 | – 804 | |
| 0 | 2,700 |
Consolidated statement of changes in equity
of New Work SE
for the period from January 1 to March 31, 2024
Consolidated statement of changes in equity
| In € thousand | Note no. | Subscribed capital | Capital reserve | Reserve for currency translation differences |
Retained earnings | Total equity |
|---|---|---|---|---|---|---|
| AS OF 01/01/2023 | 5,620 | 22,644 | 643 | 117,183 | 146,091 | |
| Consolidated net profit | 0 | 0 | 0 | 36,852 | 36,852 | |
| Other comprehensive income | 0 | 0 | 2 | 0 | 2 | |
| Consolidated total comprehensive income | 0 | 0 | 2 | 36,852 | 36,854 | |
| Regular dividend for 2022 | 9 | 0 | 0 | 0 | – 17,761 | – 17,761 |
| Special dividend | 9 | 0 | 0 | 0 | – 20,009 | – 20,009 |
| AS OF 12/31/2023 | 5,620 | 22,644 | 646 | 116,266 | 145,176 | |
| AS OF 01/01/2024 | 5,620 | 22,644 | 646 | 116,266 | 145,176 | |
| Consolidated net profit | 0 | 0 | 0 | – 16,905 | – 16,905 | |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | |
| Consolidated total comprehensive income | 0 | 0 | 0 | – 16,905 | – 16,905 | |
| AS OF 03/31/2024 | 5,620 | 22,644 | 646 | 99,362 | 128,272 |
Notes to the interim consolidated financial statements
for the period from January 1 to March 31, 2024
1. Basis of preparation of the financial statements and accounting policies
These condensed interim consolidated financial statements for the period ending on March 31, 2024, 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, 2023.
The reporting period began on January 1, 2024, and ended on March 31, 2024. The corresponding prior-year period began on January 1, 2023, and ended on March 31, 2023. The interim consolidated financial statements and the interim group management report of the Company were approved for publication by the Management Board on May 7, 2024.
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, 2023. These interim financial statements have not been audited by the auditor, nor have they been subjected to a review.
Unless indicated otherwise, all amounts are rounded to the nearest thousand euros (€ thousand). Rounding differences may occur in the tables due to mathematical reasons.
2. Segment information
| HR Solutions & Talent Access |
B2C | B2B Marketing Solutions & Events |
Total segments | New Work Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| In € thousand | 01/01/- 03/31/2024 |
01/01/- 03/31/2023 |
01/01/- 03/31/2024 |
01/01/- 03/31/2023 |
01/01/- 03/31/2024 |
01/01/- 03/31/2023 |
01/01/- 03/31/2024 |
01/01/- 03/31/2023 |
01/01/- 03/31/2024 |
01/01/- 03/31/2023 |
|
| Revenues | 50,368 | 53,349 | 15,883 | 19,462 | 1,994 | 3,116 | 68,244 | 75,927 | 68,244 | 75,927 | |
| Segment expenses | – 62,973 | – 45,618 | – 11,495 | – 9,203 | – 3,515 | – 3,204 | – 77,984 | – 58,024 | – 77,984 | – 58,024 | |
| Segment operating result | – 12,605 | 7,731 | 4,387 | 10,259 | – 1,521 | – 88 | – 9,740 | 17,903 | – 9,740 | 17,903 | |
| Other income/expenses | – 5,451 | – 2,405 | |||||||||
| EBITDA | – 15,191 | 15,498 |
Revenues by geographical region
ated with any single customer.
| In € thousand | 01/01/ – 03/31/2024 |
01/01/ – 03/31/2023 |
|---|---|---|
| Germany | 59,511 | 65,903 |
| Austria/Switzerland | 5,468 | 6,172 |
| International | 3,266 | 3,852 |
| 68,244 | 75,927 |
The Company is not reliant on major customers because a significant percentage of Group revenues is not generNon-current assets (excluding deferred tax assets and financial assets) amounting to €169,870 thousand (previous year: €229,742 thousand) relate to Germany, with €10,701 thousand (previous year: €12,881 thousand) relating to other countries.
3. Other operating income
Other operating income of €3,764 thousand (previous year: €747 thousand) includes non-cash income of €2,810 thousand resulting from the revaluation of the lease liability and the value in use of NEW WORK Harbour (headquarters of New Work SE) due to the reduction of the basic lease term from February 2031 to December 2025 and from the subletting of parts of NEW WORK Harbour.
Personnel expenses rose from €43,761 thousand by €13,715 thousand to €57,477 thousand (+31 percent). The increase in expenses is due mainly to the restructuring measures adopted in the first quarter of 2024. Severance payments made because of these measures have increased personnel expenses by €20,321 thousand (previous year: €2,394 thousand).
5. Other operating expenses
The following summary breaks down the primary items of other operating expenses:
| In € thousand | 01/01/ – 03/31/2024 |
01/01/ – 03/31/2023 |
|---|---|---|
| IT services, management services | 4,966 | 3,628 |
| Server hosting, administration and traffic | 3,597 | 3,266 |
| Legal consulting fees | 1,970 | 147 |
| Exchange rate loss | 1,214 | 391 |
| Rents/leases | 966 | 24 |
| Other personnel expenses | 522 | 505 |
| Travel, entertainment and other business expenses |
375 | 583 |
| Payment transaction costs | 280 | 256 |
| Occupancy expenses | 256 | 1,003 |
| Training costs | 205 | 337 |
| Financial statements preparation and auditing costs |
187 | 183 |
| Telephone/cell phone/postage/courier | 162 | 177 |
| Accounting fees | 158 | 174 |
| Expenses attributable to prior periods | 104 | 312 |
| Supervisory Board remuneration | 81 | 81 |
| Other | 103 | 393 |
| 15,148 | 11,459 |
6. Impairment losses on financial assets and contract assets
Impairment losses (including reversals) on financial assets and contract assets include expenses for bad debts of €332 thousand (previous year: €365 thousand) as well as income from reversals of €20 thousand (previous year: €22 thousand).
Receivables from services are impaired as follows:
| 03/31/2024 | Not yet due | Past due < 30 days |
Past due < 90 days |
Past due > 90 days |
Total |
|---|---|---|---|---|---|
| Impairment ratio | 2.0% | 7.7% | 18.8% | 23.2% | |
| Gross carrying amount (in € thousand) | 8,921 | 8,102 | 3,652 | 2,472 | 23,146 |
| Impairment (in € thousand) | – 178 | – 627 | – 685 | – 572 | – 2,062 |
| 12/31/2023 | Not yet due | Past due < 30 days |
Past due < 90 days |
Past due > 90 days |
Total |
| Impairment ratio | 1.0% | 4.3% | 20.4% | 25.5% | |
| Gross carrying amount (in € thousand) | 8,667 | 5,627 | 4,953 | 3,451 | 22,697 |
| Impairment (in € thousand) | – 85 | – 241 | – 1,012 | – 881 | – 2,220 |
The impairment figure includes both specific valuation allowances and anticipated defaults of the total receivables from services.
At €31,920 thousand, non-current assets as of March 31, 2024 were down year-on-year. The decrease compared to December 31, 2023 is mainly the result of the €28,676 thousand decrease in lease assets due to the revaluation of the right-of-use assets in NEW WORK Harbour, which resulted from the reduction of the remaining term of the lease.
Depreciation, amortization and impairment losses rose by €1,363 thousand year-on-year. The increase is mainly due to impairment losses on intangible assets as a result of the Group's reorganization.
8. Financial result
The financial result of €517 thousand (previous year: €389 thousand) includes interest income of €475 thousand (previous year: €114 thousand), income from the remeasurement of available-for-sale securities of €160 thousand (previous year: €405 thousand) and offsetting expenses of €114 thousand (previous year: €155 thousand) from the unwinding of discounts on lease liabilities.
9. Equity
As of March 31, 2024, the Group's equity remained unchanged at €5,620,435. As previously, the Company does not hold any treasury shares.
The Management Board of New Work SE will propose to shareholders at the upcoming Annual General Meeting to be held on June 4, 2024 that a regular dividend of €1.00 per share (previous year: €3.16 per share) be paid. The proposal to distribute a lower regular dividend follows the planning for the 2024 financial year communicated on January 11 and published in March with the 2023 consolidated financial statements. The Group's ability to distribute a dividend in 2024 has been impacted by the non-recurring charges resulting from the restructuring program in particular.
Due to the Group's fundamentally cash-generative business model, it aims to return to the previous dividend practice in the medium term.
10. Related parties
Please refer to the consolidated financial statements as of December 31, 2023, for further information about related parties. From the perspective of the Group, no significant changes with respect to the Burda Group occurred until March 31, 2024.
There were no claims against members of the Management Board and the Supervisory Board as of March 31, 2024.
11. Financial instruments
The following classes of financial instruments existed as of the reporting date:
| In Tsd. € | Measurement category 1 | 03/31/2024 | 12/31/2023 |
|---|---|---|---|
| Non-current financial assets at amortized cost | Amortized cost | 2,823 | 3,005 |
| Non-current financial assets at fair value | FAFVtPL | 17,226 | 28,427 |
| Current receivables from services | Amortized cost | 20,477 | 19,881 |
| Current other assets | Amortized cost | 6 | 1,201 |
| Cash and cash equivalents | Amortized cost | 93,077 | 98,304 |
| Non-current lease liabilities | Amortized cost | 48,254 | 53,658 |
| Current trade accounts payable | Amortized cost | 11,339 | 9,971 |
| Current lease liabilities | Amortized cost | 4,833 | 6,254 |
| Current other liabilities | Amortized cost | 3,586 | 10,581 |
1 FAFVtPL = Financial assets at fair value through profit or loss
All of the non-current financial assets at fair value are classified as Level 1 financial instruments. Their purpose is to manage excess liquidity.
For all financial assets and liabilities, the fair values, to the extent that they can be determined, almost match their carrying amounts. As was the case in the previous year, no financial assets were used as collateral for liabilities of the Group in the financial year.
12. Significant events after the interim period
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.
Hamburg, May 7, 2024
The Management Board
Petra von Strombeck Ingo Chu Frank Hassler
Financial calendar
| Publication of the Q1 2024 financial report | May 7, 2024 |
|---|---|
| Annual General Meeting (in-person) | June 4, 2024 |
| Publication of the 2024 half-year financial report | August 6, 2024 |
| Publication of the Q3 2024 financial report | November 6, 2024 |
Our social media channels
https://www.new-work.se/en/investor-relations (New Work SE – Investor Relations Website)
nwx.new-work.se/ (New Work Experience)
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)
Publishing information and contact
For Annual Reports, Interim Reports and current financial information, please contact:
Publisher
New Work SE Am Strandkai 1 20457 Hamburg Germany
Phone: + 49 40 41 91 31 – 793 Fax: + 49 40 41 91 31 – 44
Editor-in-chief
Patrick Möller (Vice President Investor Relations)
Consulting, concept and design
Silvester Group www.silvestergroup.com
Photo credits New Work SE/Raimar von Wienskowski For press inquiries and current information, please contact:
Corporate Communications
Marc-Sven Kopka Phone: + 49 40 41 91 31 – 763 Fax: + 49 40 41 91 31 – 44 E-mail: [email protected]
Rounding differences may occur
This quarterly statement 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/reports.
HARBOUR FOR:
New Work SE
Am Strandkai 1 20457 Hamburg Germany Phone + 49 40 41 91 31 – 793 Fax + 49 40 41 91 31 – 44 [email protected]