Tinder Owner Match Group's Profit Falls
February 02 2016 - 06:20PM
Dow Jones News
Match Group Inc. reported a decline in profit and
weaker-than-expected revenue in its first quarter as a publicly
traded company despite growth at its Tinder dating app brand.
Shares fell 3.2% in after-hours trading.
The owner of online dating apps and sites including Match.com
and OkCupid went public in November, looking to capitalize on the
booming market for dating sites in the U.S.
Match shares closed at $12.19 on Tuesday, just slightly above
its IPO price of $12 a share.
For the quarter ended Dec. 31, Match said its earnings fell to
$35.6 million, or 16 cents a share, from $48.3 million, or 29 cents
a share, a year earlier.
Match cited higher stock-based compensation and interest expense
for the year-over-year decline in profit.
Excluding special items, per-share earnings were 24 cents, while
analysts polled by Thomson Reuters had forecast adjusted earnings
of 20 cents a share.
Revenue rose 12% to $267.6 million, but came in below analysts'
forecast for revenue of $277.3 million.
Match said its dating revenue rose 14% to $241.5 million, driven
by a 30% jump in paid members. Match cited "significant" growth at
Tinder and its acquisition of PlentyOfFish, which closed in late
October.
But average revenue per paying user fell 14% to 53 cents. Match
said the decline reflects the shifting of its business toward
lower-paying brands such as Tinder and OkCupid.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
February 02, 2016 18:05 ET (23:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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