Monster 1Q profit drops 43 percent as marketing costs spike

NEW YORK—Employment-services company Monster Worldwide Inc. said Thursday its first-quarter profit dropped 43 percent as marketing and promotion costs skyrocketed.

For the period ended March 31, Monster posted a profit of $22.6 million, or 18 cents per share, compared with $39.5 million, or 30 cents per share, in the year-ago period.

Excluding certain items, including currency benefits, income was $29 million, or 24 cents per share.

Revenue rose 13 percent to $370.4 million from $329 million in the first quarter of 2007.

Analysts polled by Thomson Financial expected, on average, earnings of 22 cents per share on revenue of $362.9 million. Analysts typically exclude one-time items.

Marketing and promotion costs jumped 47 percent to $114.6 million from $78.1 million. Total operating expenses rose 25 percent to $339 million from $270.8 million.

Sal Iannuzzi, chairman, president and chief executive officer of Monster, said the company is working to add business customers of all sizes in order to boost sales and improve market penetration.

"We believe this action will help fuel us through the current economic downturn and position us well for an economic rebound," Iannuzzi said in a release. "We are convinced that the current market environment presents a building opportunity that will yield solid benefits to our shareholders."

Shares rose 1 cent to $25.57 in aftermarket trading.

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AP Business Writer Ernest Scheyder

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