HeadHunter Group PLC (NASDAQ:HHR) Q2 2020 Earnings Conference Call - Final Transcript
Aug 27, 2020 • 09:00 am ET
as a percentage of revenue by circa 1 percentage points to 10% on the back of the decrease in revenue.
Also, net ForEx gain was RUB19 million in the second quarter 2020, compared to net ForEx loss of RUB13 million in the second quarter of 2019. This has contributed to the expansion of the adjusted EBITDA margin. As a result, ForEx as a percentage of revenue has increased by 2 percentage points in the second quarter 2020.
Bottom line, as a result, our adjusted EBITDA for the second quarter reached RUB685 million and our adjusted EBITDA margin was 44.7%, which is a 7 percentage points decrease compared to the second quarter of 2019. This 7 percentage points decrease was a result of 9 percentage points increase in personnel, marketing and other costs as a percentage of revenue as I just told you before, which was offset by 2 percentage points due to the increase in the foreign exchange gain.
Moving on to capital expenses. In the second quarter, we have substantially completed our last quarter's renovation project, and we do not expect material office renovation costs in this year and at least in the year 2021 as well. Also, in the second quarter 2020, we put most of our capex on hold. And as a result, our capex in the second quarter was RUB41 million, down 62% versus previous year. Adjusted for office renovation costs, capex was less than 2% of revenue in the second quarter 2020.
We are gradually unfreezing some of our capex in the second half of the year. And for the full-year 2020, we expect capex to be between 3% and 4% of our revenues, which will be lower than 6% in the 2019, mostly on the back of a decrease in office renovation costs.
Now, our net working capital as of June 30, 2020, grew by RUB129 million or circa 5% compared to the net working capital as of the end of last year, primarily due to increase in trade and other payables.
Income tax expense was RUB75 million in the second quarter 2020. That's a decrease compared to RUB174 million in the same period the year before. This decrease was on the back of a decrease in revenue and corresponding decrease in taxable profits, as well as a decrease in the effective tax rate which was mainly due to the non-deductible IPO-related expenses not occurring in this year, as well as the non-taxable foreign exchange gain we have received in the second quarter of this year. As a result, the effective tax rate has decreased to circa 24% in the second quarter 2020, compared to 39% in the second quarter a year ago.
Now turning to cash generation metrics. In the second quarter 2020, we generated RUB105 million from operating activities, compared to RUB443 million in the second quarter of 2019. This decline was driven by the decrease in sales. Net cash used in investment activities was RUB29 million in the second quarter of