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Monster Worldwide, Inc. has a market cap of $886.9 million; its shares were traded at around $6.08 with a P/E ratio of 19.8 and P/S ratio of 0.9.
Highlight of Business Operations:Our consolidated revenue decreased $32.7 million, or 12.1%, in the second quarter of 2012 compared to the same period of 2011. In constant currency, our consolidated revenue decreased 8.7% compared to the same period of 2011. Our Internet Advertising & Fees revenue decreased 42.0%. This decrease was primarily attributable to the Company, as of the beginning of the third quarter of 2011, no longer engaging in arbitrage lead generation activities due to the lack of profitability in such business and in light of new regulations. Excluding the arbitrage lead generation activities in 2011, our consolidated revenue would have decreased 8.3% and on a constant currency basis would have decreased 4.8%. Our Careers — International segment decreased 10.7% (in constant currency, our Careers — International revenue would have decreased 2.9% compared to the same period of 2011), primarily due to decreases within most countries in Europe as well as relatively flat revenue in Asia with an increase in China partially offset by a decrease in Korea. Our Careers — North America segment decreased 5.2% primarily due to decreased revenue from our enterprise and ecommerce customers, partially offset by increased business activity from our newspaper, staffing and government sectors. These decreases in our consolidated Careers segments were primarily due to the deceleration of booking activity beginning in the fourth quarter of 2011 and continuing in 2012, which resulted from the increased global economic uncertainty.
Our Careers — International segment revenue decreased $12.2 million, or 10.7%, in the second quarter of 2012 compared to the same period of 2011 (in constant currency, our Careers — International revenue would have decreased 2.9% compared to the same period of 2011), primarily due to decreases within most countries in Europe with Asia revenue remaining relatively flat with growth in China offset by a decrease in Korea. Our Careers – International segment experienced a bookings decrease of approximately 21% (in constant currency, our bookings would have decreased 13% compared to the same period of 2011). Bookings in Europe decreased 24% (in constant currency, our bookings would have decreased 16% compared to the same period of 2011), primarily resulting from decreases in most countries in Europe due to the continued weak and uncertain economic environment. Bookings in Asia decreased 14% (in constant currency, our bookings would have decreased 7% compared to the same period of 2011), primarily resulting from decreases in China, Korea and India.
Our consolidated revenue decreased $48.0 million, or 9.0%, in the first six months of 2012 compared to the same period of 2011. In constant currency, our consolidated revenue decreased 6.7% compared to the same period of 2011. Our Internet Advertising & Fees revenue decreased 41.7%. This decrease was primarily attributable to the Company, as of the beginning of the third quarter of 2011, no longer engaging in arbitrage lead generation activities due to the lack of profitability in such business and in light of new regulations. Excluding the arbitrage lead generation activities in 2011, our consolidated revenue decreased 5.1% and on a constant currency basis decreased 2.6%. Our Careers — International segment decreased 5.7% (in constant currency, our Careers — International revenue remained relatively flat compared to the same period of 2011), primarily due to decreases within most countries in Europe partially offset by increases within Asia in China and India, partially offset by a decrease in Korea. Our Careers — North America segment experienced a 3.1% decrease mainly due to decreased revenue from our enterprise and ecommerce customers, partially offset by increased business activity from our newspaper and staffing sectors. These decreases in our consolidated Careers segments were primarily due to the deceleration of booking activity beginning in the fourth quarter of 2011 and continuing in 2012, which the Company believes results from the increased global economic uncertainty.
Salary and related expenses decreased $14.9 million, or 13.5%, in the first six months of 2012 compared to the same period of 2011. This decrease in salaries and related expenses resulted primarily from $4.6 million of decreased stock-based compensation, $4.1 million of decreased regular salary costs as a result of our restructuring programs, $3.9 million of decreased variable compensation costs for the Company’s sales force resulting from decreased booking activity as well as $2.4 million of decreased associate incentive programs.
Our effective tax rate differs from the Federal United States statutory tax rate of 35% due to accrual of state taxes, non-deductible expenses, foreign earnings taxed at different rates, accrual of interest on tax liabilities, accrual of United States residual tax on earnings that are not permanently reinvested and the effect of valuation allowances. The tax benefit for the six months ended June 30, 2012 was increased by $12.4 million of discrete items, consisting primarily of $15.0 million of a tax benefit related to certain tax losses arising from the Company’s restructuring. This benefit was partially offset by the effect of valuation allowances and accruals of interest on tax liabilities. In addition, as a result of settlements and adjustments to estimated tax liabilities in the six months ended June 30, 2012, the Company recognized $1.0 million of previously unrecognized tax benefits, which on a net of tax basis impacted the effective tax rate by $0.7 million. The Company also reversed accrued interest related to unrecognized tax benefits of $1.0 million, which on a net of tax basis impacted the effective tax rate by $0.6 million. The total benefit reflected in the first six months of 2012 income tax provision due to reversals of tax and interest was $1.2 million.
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