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BUSINESSMonday 2 November 2015
LinkedIn’s 3Q results top analyst views, propelling stock
MICHAEL LIEDTKE In this Nov. 6, 2014, file photo, a LinkedIn employee walks past a company logo at the company’s For all its success, LinkedIn
AP Technology Writer headquarters in Mountain View, Calif. LinkedIn reports quarterly financial results on Thursday, Oct. has had trouble getting its
SAN FRANCISCO (AP) — 29, 2015. accountholders to visits its
LinkedIn is behaving like service as frequently and
an extremely productive Associated Press stick around for as long as
worker who always seems people do at Facebook’s
to get the job done while tempt to make it easier to lion, or 31 cents per share, lysts’ estimates of 47 cents social networking site or
still yearning to be more deliver pleasant surprise. widening from a setback of per share. even other popular com-
like flashier peers. LinkedIn’s revenue for the $4.3 million, or 3 cents per The service ended Sep- munications channels such
The professional network- latest quarter rose 37 per- share, at the same time last tember with 396 million ac- as Pinterest.
ing service delivered an- cent from last year to $780 year. countholders, a gain of 16 That shortcoming has
other outstanding perfor- million. That topped the If not expenses for employ- million since June. LinkedIn prompted LinkedIn to add
mance in the third quarter, estimate of $757 million ees’ stock compensations CEO Jeff Weiner said the more content offering pro-
lifting its stock by almost 12 among analysts surveyed and accounting costs for network topped the 400 fessional advice and to tin-
percent in extended trad- by Zacks Investment Re- past acquisitions, LinkedIn million mark this month. ker with its mobile applica-
ing after the numbers were search. said it would have earned “LinkedIn’s value proposi- tions in an attempt to make
released Thursday. The Mountain View, Califor- 78 cents per share. That fig- tion is simple — connect to its service even more com-
LinkedIn has been a Wall nia, company lost $40.5 mil- ure easily surpassed ana- opportunity,” Weiner said. pelling. By luring in more
Street star since its stock people for longer periods,
debuted in May 2011, its LinkedIn hopes to boost its
service establishing itself as ad revenue, which doesn’t
a digital rolodex for ambi- bring in as much money
tious workers and talent- as the fees that LinkedIn
hungry employers. collects from employers,
The formula has enabled headhunters and job seek-
LinkedIn to expand its au- ers for additional privileges
dience and boost its rev- and analysis.
enue at a clip that has Those efforts so far have
increased the company’s only been modestly suc-
market value by five-fold cessful.
since the initial public of- Most investors, though,
fering. apparently will be satis-
True to form, LinkedIn’s re- fied if LinkedIn just keeps
sults for the three months doing what it does best
ending in September ex- as a conduit for workers
ceeded the projections and employers. LinkedIn’s
that steer investors’ per- stock surged $26 to $243
ceptions. The company’s in extended trading. If the
revenue forecast fell within shares mirror that gain in
the range of analysts’ pre- Friday’s regular session,
dictions, a conservative the stock will have gained
habit that LinkedIn has ad- about 6 percent so far this
opted in an apparent at- year.
ECB: Greek banks need $15.8 billion to get back on track
DAVID McHUGH gles to recover. deposits over the 100,000- performing loans will both been bailed out under
AP Business Writer The banks — Alpha Bank, euro ($110,000) limit on happen before the end of Greece’s earlier bailout
FRANKFURT, Germany (AP) Eurobank, National Bank of deposit insurance. That the year. deals. But they suffered
— The European Central Greece and Piraeus Bank would sting big depositors Tsakalotos told Parliament further losses as the coun-
Bank says Greece’s bat- — now must submit plans such as small and medium that the country’s Financial try headed toward a third
tered banks need 14.4 bil- to raise the money to boost sized businesses, which are Stabilization Fund will ob- bailout this summer.
lion euros ($15.8 billion) in their capital buffers against already having enough tain common bank shares, The number of busi-
fresh money to get back on future financial turmoil and trouble. with voting rights. ness loans not being repaid
their feet and resume nor- losses. A bill allowing the recapital- “We would like to influence increased as the economy
mal business. Part of that capital could ization of banks was passed the banks’ policies, so that deteriorated and investors
The figure announced Sat- come from private inves- by voice vote in Greece’s they do not invest in high- fled. Depositors pulled out
urday is the result of an ECB tors; what can’t be raised Parliament Saturday. risk instruments. money fearing that Greece
review of Greece’s four from investors would come The extreme right Golden We do not want to influ- would be forced to leave
main banks following an from bailout funds. Dawn and the Communist ence top management the euro and leave them
agreement on the troubled The financial hole the ECB Party were the only dissent- appointments or to whom with a new currency worth
country’s third bailout: 86 found is smaller than origi- ers in the eight-party legis- they should provide loans,” much less.
billion euros ($94.6 billion) nally feared. The bailout lature. he said. The bailout deal staved
from other eurozone gov- provided for up to 25 billion Deputy Prime Minister Yian- The ECB found the banks off an exit from Europe’s
ernments in August. The euros ($27.5 billion) to fix nis Dragasakis said passage would need 4.4 billion eu- shared euro currency. But
review is an important step the banks. of the bill would avert sei- ros under normal expecta- limits on withdrawals and
toward ending limits on Greece is racing to bail out zure of deposits. tions and 14.4 billion euros transfers imposed in June to
bank customer withdrawals the banks before year end, Greek finance minister Eu- if there is a more severe prevent Greek banks from
and transfers that continue when new European bank clid Tsakalotos said that downturn in the Greek collapsing remain in place,
to hamper businesses as bailout rules take effect bank recapitalization and economy. though they have been
the Greek economy strug- that would require seizing a viable solution to non- Greek banks have already loosened.
