Project work is on the rise. More and more people are working as freelancers. Although this has many disadvantages in precarious jobs, there is now also a large number of specialists who prefer to work on their own account and thus generate a high income. Platforms such as Xing from New Work SE are gathering places for these business professionals. New Work SE (formerly XING AG) is the leading social online network for professional contacts in the German-speaking region with over 19 million members.

On XING, employed people from all sectors network, search and find jobs, employees, orders, cooperation partners, expert advice or business ideas and inform themselves about the latest topics in their industry.

Overview of the jumble of numbers New Work presented mixed figures for the first half of the year. Revenue fell 0.6% to €151.7 million. Operating income (EBIT) decreased by 38.1% to €22.3 million. Profit fell 23.3% to €17.1 million. Cash flow decreased by 4.9% to €50.6 million. Nevertheless, we continue to estimate the liquidity situation to be stable. Revenues decreased on almost all markets and in almost all sectors. This decline is mainly due to the continuing decline in B2C due to the repositioning of the XING platform.

Revenue fell less than expected despite poor labor market data and recessionary economic trends. Personnel costs rose 16.7% to €81.9 million. Marketing costs also increased sharply. These cost increases weighed on the EBIT. The high self-employed contribution had a positive effect on profit. The high development costs from the past should also soon have a positive effect on profit, especially as the demand for skilled workers remains high. The shortage of skilled workers will intensify in the future when the baby boomer generation retires. For this reason, New Work’s products remain attractive for job matching to connect talented people with the right companies.

Xing is better than its reputation – generous dividend Since the beginning of the year, the stock price has fallen 56%. The recession and the deteriorating working environment as well as increasing costs are weighing on the business figures. Nevertheless, the company remains solid for us. The dividend yield is also convincing. Xing is also better than its reputation.