RECORD NET GROWTH: 54,000 ADDITIONAL SUBSCRIBERS IN Q3 SIGNIFICANT GAINS IN MARKET SHARE IN GERMANY AND THE UK SUCCESS OF MEETIC AFFINITY: 17,000 NEW SUBSCRIBERS IN Q3
Boulogne-Billancourt, 23 October 2008
MEETIC (FR0004063097 – MEET), European leader in online dating, today announced its revenues for the third quarter and first nine months of 2008.
In the third quarter of 2008, MEETIC generated revenue of €34.0 million, an increase of 9.5% on the second quarter of 2008. At constant exchange rates (revenue at DatingDirect is generated in pounds sterling), revenue in the third quarter of 2008 would have been €34.8 million.
Revenue growth over the first nine months in purely organic terms (excluding all acquisitions since the creation of the Group) was 14%.
Over the first nine months, 95.5% of total revenue was generated in Europe, and 4.5% in the rest of the world.
- The internet business area, which is by some distance the largest (accounting for 96% of revenue) generated growth of 21.8% at constant exchange rates,
- The mobile business area (3% of revenue) saw revenue decline by 16.4%. Mobile revenues in Europe, from the MeeticMobile product, grew by 12%. However, for the third quarter in a row, the Chinese mobile service generated no revenue,
- Advertising and event revenues remained stable and continue to be marginal (1% of revenue).
First positive signs of strategic investment in marketing: record subscriber recruitment in Q3
At 30 September 2008, MEETIC had 705,616 subscribers, marking a record quarterly increase of 54,364 subscribers, and taking the total gain over the first nine months of the year to 128,361. Strong growth in subscriber numbers in the third quarter reflected the positive impact of the additional marketing investment that has been made since the first quarter in the UK and Germany and to support the launch of Meetic Affinity in France in July.
The UK and Germany, into which the Group has recently expanded through the acquisitions of DatingDirect and NEU.DE, are of particularly strategic importance to the Group, given the scale of the growth opportunities they offer. Since NEU.DE joined the Group, its subscriber base has grown by 54%, whilst that at DatingDirect has grown 27% since 1 January 2008. This growth in the subscriber base reflects a significant gain in market share in Germany, whilst the Group has consolidated its competitive position in the UK.
As forecast, the Group also launched its Meetic Affinity matchmaking service in France on 1st July. Over the course of the third quarter, Meetic Affinity recruited nearly 17,000 subscribers in France, which, by way of illustration, represents €2.7 million in subscription charges over the quarter (compared with €1.3 million in revenue recorded, net of deffered revenue). Given the success enjoyed by Meetic Affinity in France, and in line with its business plan, the Group has already extended its matchmaking service to the main European countries where it is active.
Outlook for 2008
MEETIC expects full year revenue of between €131 million and €134 million for 2008.
Marc Simoncini, Chairman and Chief Executive Officer at MEETIC, commented: „MEETIC is starting to benefit from the considerable investment made in its historical business areas over the first nine months of the year. The results we have seen on our matchmaking site (MeeticAffinity) and our British and German online dating sites (DatingDirect and Neu .de) validate the investment strategy pursued in 2008. To date, the Group has seen no impact from the economic climate on its business levels, as demonstrated by growth in subscriber numbers. Even so, MEETIC will pay very close attention to future trends in business levels and the optimisation of its cost structure.“