Robert Walters (RWA) Q2 2024 TU earnings summary

Executive summary

• Q2 2024 net fee income declined 12% year-on-year to £84.8m, reflecting global hiring market normalization and macroeconomic/political uncertainty in certain geographies.

• Sequential improvement was seen through the quarter, but the ramp-up was weaker than last year, with June fees 18% lower year-on-year.

• H1 2024 NFI down 14% year-over-year in constant currency, with all regions experiencing declines.

• Headcount reduced by 5% sequentially and 15% year-over-year to 3,625, aligning with lower demand.

Financial highlights

• Q2 NFI: £84.8m, down from £99.9m in Q2 2023; H1 NFI: £166.1m, down from £202.3m in H1 2023.

• Specialist professional recruitment net fee income was £72 million, down 10% year-over-year.

• Permanent recruitment fees fell 11%, while temporary/contract business was down 9%.

• Recruitment outsourcing net fee income was £13 million, down 23% year-over-year, impacted by weak financial services demand.

• Quarter-end net cash stood at approximately £49 million, excluding IFRS 16 leases.

Outlook and guidance

• Client and candidate confidence remains muted, with the adjustment from the post-pandemic peak lasting longer than expected.

• Material improvement in confidence is not expected before 2025; near-term planning assumes gradual recovery and continued market turbulence.

• The range of potential outcomes for the full year is wider than historically due to market uncertainties.

• Medium-term business strengthening plan to be detailed at September capital markets event.