Boulogne-Billancourt, 11th May 2010
MEETIC (ISIN: FR0004063097), the European leader in online dating, today announces its consolidated results for the 1st quarter to 31st March 2010.
Consolidated revenue for the first quarter of 2010 totalled 43.4 million euros, up +37.6% compared to the first quarter of 2009, and up +36.4% on a constant forex basis.
As announced on 10th March 2010, Meetic transferred its Brazilian subsidiary ParPerfeito’s activities to the new JV created with Match.com. For comparative purposes, the Group’s revenue for the first quarter of 2010 and that of the same quarter of 2009, were thus restated to exclude the deconsolidated subsidiary’s revenue.
The Group’s pro forma revenue for 2009, including Match.com’s European activities as if they had been integrated on 1st January 2009, came to 182.3 million euros for 2009 as a whole, and to 46 million euros for the 1st quarter of 2009.
Revenue from Internet activity was up +38.9% to 42 million euros, and up +37.7% on a constant forex basis.
The Group had 829,258 subscribers at 31st March 2010, compared to 844,360 at the end of December 2009, i.e. a decrease of -1.7%, exclusively amongst Dating subscribers. Advertising campaigns were concentrated at the end of the quarter: the majority of European television commercials were implemented in the first quarter, as was the finalisation of the migration of Match.com’s sites onto the Group’s European platform. Subsequently, the substantial acquisition of subscribers traditionally recorded at the start of the year was pushed back.
Subscription sales (excluding deferred revenue) totalled 43.5 million euros over the first quarter, compared to 42.7 million euros over the final quarter of 2009. The +1.9% increase in billing between these two quarters, despite the decrease in the number of subscribers, reflects the adoption of a billing model that prioritises monthly ARPU (Average Revenue Per User).
The 1st quarter of 2010 was the final quarter of the transition phase. Thanks to the completion of the integration of Match.com’s European activities and the European launch of the Matchmaking activity at the end of the first quarter, the Group will henceforth benefit from all the necessary assets required for the success of its profitable growth strategy.
As previously announced, since mid-February Meetic has been massively promoting its Affinity offer on its main markets. Marketing investments thus represented 71% of revenue over the first quarter of 2010, i.e. 30.7 million euros.
As a result of the total marketing investments spent over the 1st quarter, a period that is overweighted in terms of advertising campaigns, the EBITDA margin before the cost of free shares was at breakeven compared to an EBITDA margin of 6% for the same quarter last year.
Earnings from divested activities totalled 2.4 million euros, and was broken down as follows:
- 2.2 million euros in capital gains from the transfer of the ParPerfeito subsidiary to the JV with Match.com, consisting of 1.4 million euros from positive trends in the dollar/euro parity between 31st December 2009 and 10th March 2010, the date on which the operation became effective, and 0.8 million euros from the recycling of translation reserves in the income statement.
- 0.2 million euros of net profit from the ParPerfeito subsidiary for January and February.
Given the time necessary to close the JV’s accounts, the Group’s share of the latter’s results will be taken into account in the Meetic group’s consolidated results with a one-quarter delay. At 31st March 2010, the Group had a net cash surplus of 46 million euros.
2010 outlook
The migration of Match.com’s sites onto the Group’s European platform was successfully achieved on 15th April 2010, almost 3 months ahead of the initial schedule. Now that this stage has been completed, the Group has the perfect layout to pursue its driving role in the development of the European online dating market.
Backed by its exceptional position on the Dating segment, the Group is now aiming to significantly develop its Matchmaking offer in all countries in which it is present. This development will be supported throughout the year by the massive promotion of the Affinity offer, promotion that has already been underway since mid-February.