Profits dip at Irish arm of Indeed to €606m as firm pays €1.72bn dividend

Staff costs also included share-based payments of €18.75m this year. Picture: RollingNews.ie

Pre-tax profits at the Irish arm of recruitment giant Indeed this year fell by 6% to €606.83m against the background of an “uncertain economic environment”.

New accounts filed by Indeed Operations Ireland Ltd show the profits declined as revenues increased by 8%, from €1.65bn to €1.78bn in the 12 months to the end of March this year.

The company paid out a dividend of €1.2bn in July 2024 and in a post-balance sheet event, paid out a further €520m dividend in April of this year.

The pre-tax profits of €606.83m for the 12 months to the end of March follow pre-tax profits of €647.18m in the prior year.

The directors said the company was operating in an uncertain economic environment.

The report says: “Nevertheless, the directors believe that the company is well-positioned for the long term”.

Numbers employed by the company reduced by 111 from 1,285 to 1,174, and the company’s staff costs reduced from €173m to €163.5m.

The staff costs included severance costs of €3.35m, which included €2.82m under that heading in 2024. Staff costs also included share-based payments of €18.75m this year.

Indeed is the world’s number one job site and a global leader in job matching and hiring, operating in more than 60 countries.

In September, the company announced further redundancies in Dublin as it continued to “focus on AI”.

The company generates its revenue primarily through online job advertising.

The directors said changes in US tariffs, immigration policy and DEI (diversity, equity and inclusion) policy after the change in administration created uncertainty.

On economic risks facing the business, the directors said “due to increasing interest rates in the US and widespread lay-offs in the tech sector, business clients are concerned about an economic downturn".

They said this had resulted in a fall in hiring activities and a return to a more historical balance between labour supply and demand.

The company’s operating profits reduced by 4%, from €600.8m to €575.2m, and pre-tax profits were boosted by combined net interest income and an impairment reversal of €31.56m.

The company recorded a post-tax profit of €516.2m after incurring a corporation tax charge of €90.6m. After the dividend payout, accumulated profits this year reduced from €1.35bn to €674.6m.