New Work SE reaffirms forecast amid a challenging market environment

EQS-News: New Work SE / Key word(s): Quarterly / Interim Statement
New Work SE reaffirms forecast amid a challenging market environment (news
with additional features)

07.05.2024 / 09:50 CET/CEST
The issuer is solely responsible for the content of this announcement.

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New Work SE reaffirms forecast amid a challenging market environment

* kununu no. 1 for salary data in German-speaking countries

* Significant investments to reposition XING

* Restructuring largely completed


Hamburg, 7 May 2024 - New Work SE, the parent company of the brands XING and
kununu, today presents its results for the first quarter of 2024. The
figures portray a company continuing to make strides in implementing its new
strategy amid a challenging economic environment.

Revenues in the HR Solutions & Talent Access segment fell by 6 per cent to
EUR50.4 million (Q1 2023: EUR53.3 million). This is mainly due to the decline in
job ad postings, in turn resulting from the German economy's current
recession. The B2C segment, as expected, fell by 18 per cent to EUR15.9
million (Q1 2023: EUR19.5 million). This is due to the company's strategic
shift and full focus on monetisation from its HR Solutions segment. Revenues
in the smallest segment, B2B Marketing Solutions, declined by 36 per cent to
EUR2.0 million (Q1 2023: EUR3.1 million). Consequently, total revenues were ten
per cent lower than those of the previous year's quarter (EUR68.2 million in
Q1 2024 compared to EUR75.9 million in Q1 2023).

Despite the extremely difficult employment market environment, New Work SE
continued to invest in implementing its strategy in the first quarter of
this year. To this end, XING launched its largest-ever advertising campaign,
and the brand is now the main sponsor of the recently founded Baller League
to reach and appeal to new, younger target audiences. kununu, the leading
platform for employer reviews in German-speaking countries, has continued to
invest in its growth strategy with a regional campaign in the most populous
federal state of North Rhine-Westphalia. These investments are tangible in
the restructuring-cost-adjusted pro forma EBITDA, which, as a result, is
down 50 per cent at EUR9 million compared to the previous year (Q1 2023: EUR17.9
million). Consequently, adjusted pro forma consolidated profit fell by 87
per cent to EUR1.1 million euros (Q1 2023: EUR8.4 million).

Petra von Strombeck, CEO at New Work SE, said: 'We're in the midst of
restructuring the company. XING is becoming a jobs network, with
monetisation largely coming from our HR Solutions segment. However,
repositioning one of Germany's best-known online brands won't happen
overnight and requires significant investments, many of which we've already
pushed through in the first quarter. By doing so, we're positioning XING as
a network primarily geared towards jobs and reaching new audiences. And
kununu has made a successful and visible impact in western Germany in the
first quarter to further accelerate the brand's growth.'

Continued growth of kununu's Workplace Insights, increasing by 28 per cent
to 11.2 million in the first quarter of 2024, means the brand has not only
extended its market leadership in German-speaking countries overall, but now
also leads the way there when it comes salary data with 4 million data
points. This strong growth in data points ensures not only a high volume but
also, thanks to its currency, provides high-quality current insights.

Meanwhile, XING's transformation into a jobs network continues with several
changes in Q1 2024 resulting in positive changes to measurable KPIs.
Recruiter profile visibility received a boost, reflected by a 200 per cent
increase in visits to recruiter profiles. Additionally, millions of XING
users have already set their individual job preferences in the newly
designed Job Preferences section, which helps them with better-matching job
offers. This was accompanied by XING's marketing campaign at the start of
the year which led to excellent brand recall, product use and reach -
especially from the online video spots.

The planned comprehensive restructuring measures have been largely completed
ahead of schedule. 85 per cent of the planned cost savings have already been
achieved, although the full effects of the savings will not be achieved
until 2025.

Despite the challenging macroeconomic environment, New Work SE reaffirms its
forecast adjusted in January 2024. The company expects a pro forma EBITDA in
the range of EUR55-65 million.

About New Work SE
The New Work SE Group strives towards a better working world. With strong
brands such as XING, kununu and onlyfy by XING, and the largest talent pool
in German-speaking countries, it claims the spot of recruiting partner Nr. 1
in these countries. By bringing candidates and companies together, it guides
talents to a more fulfilling working life while simultaneously helping
companies to greater success by winning the right talent. The Group has been
listed on the Frankfurt stock exchange since 2006, has its headquarters in
Hamburg and currently employs around 1,500 people at offices including
Berlin, Vienna and Porto. Visit new-work.se and nwx.new-work.se for more
information.


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   Language:       English
   Company:        New Work SE
                   Am Strandkai 1
                   20457 Hamburg
                   Germany
   Phone:          +49 (0)40 419 131-793
   Fax:            +49 (0)40 419 131-44
   E-mail:         ir@new-work.se
   Internet:       https://www.new-work.se
   ISIN:           DE000NWRK013
   WKN:            NWRK01
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1897457

End of News EQS News Service
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1897457 07.05.2024 CET/CEST