Monster Worldwide plans to sell ChinaHR

Monster Worldwide Inc, the global online recruitment firm, on Thursday reported financial results for the third quarter, and said it is pursuing a sale of its ChinaHR business.

The company also announced that it will implement a corporate restructuring to focus on its core business and reduce its cost structure in order to improve profitability and cash flow.

The restructuring is expected to reduce Monster's operating expenses by about $130 million on an annualized basis, the company said.

It also reported a non-cash asset impairment charge and deferred tax asset write-off of $225 million related to ChinaHR.

Net profit from continuing operations rose to $39 million, or 35 cents per share for the third quarter, from $18.5 million, or 15 cents per share, a year earlier, its quarterly report said, while revenue fell 10 percent to $221.7 million.

Cash and cash equivalents were $175 million by Sept 30, compared with $250 million as of Dec 31, 2011. Net operating cash flow in the quarter was $7.7 million. Deferred revenue as of Sept 30 was $333 million, which excludes results from ChinaHR, according to the report.

The company completed its acquisition of ChinaHR in 2008, after it paid $174 million in cash for a remaining 55 percent stake in the business.

In 2005, Monster purchased a 45 percent stake in the company in order to explore the fast-growing Chinese market.

mengfanbin@chinadaily.com.cn