HAMBURG (dpa-AFX) - Pessimistic business expectations of companies and the restructuring of its career network Xing make the New Work group more cautious about the current year. There is a clear cooling on the labor market to feel, said Group CEO Petra von Strombeck according to a statement on Wednesday evening. Because many companies are currently expecting an economic downturn, demand for recruiting products is lower, she said. In addition, Xing is to be converted into a job network, the previous revenue is therefore partially missing. For the papers of New Work this meant a minus of about eight and a half percent to 150 euros on Thursday. The price gains of 2023 are thus gone.

For 2023, the New Work board now expects earnings before interest, taxes, depreciation and amortization (Ebitda) of 92 to 100 million euros, adjusted for special effects, as the SDax company announced after the close of business in Hamburg. This would put operating profit below the previous year's figure of 104 million euros. Previously, the company had considered a slight increase possible. Contrary to previous assumptions, adjusted sales are also no longer expected to show single-digit growth, but will remain at the previous year's level of 313.4 million euros.

"Rising costs and economic uncertainty are causing entrepreneurs to take a more critical look at the future and act more hesitantly," von Strombeck wrote in a letter to shareholders. The first effects were already noticeable in the opening quarter. Compared to the same period last year, sales increased by only two percent to 75.9 million euros.

Because employers invested less in recruitment as a result of the current market situation and New Work nevertheless continued to invest money in the Group's restructuring, operating profit (Ebitda) fell by 30 percent to 17.9 euros.

The extent of the weak development came as a negative surprise, commented industry expert Nicole Winkler of Hauck Aufhäuser Investment Banking in an initial assessment. The operating profit for the first quarter had clearly missed analysts' expectations.

Consolidated net profit was 9.2 million euros, compared with 12.6 million euros a year earlier./ngu/mne/mis