Cupid, an online dating company, has repored a rise in revenues across all three of its geographical regions during the first half of the year, primarily as a result of increased market spend.
Within New Markets (USA, Canada, France, Italy, Spain, Germany), revenues for the first half of 2012 are expected to be similar to the level achieved in the whole of 2011 (£22.2m), while revenues within Established Markets (UK, Australia, New Zealand, Ireland) have continued to grow at or above market growth rates of 510% as planned, and revenues from Developing Territories (Brazil, India) continue to grow from a relatively low base.
"This growth in revenue has been achieved through increased marketing spend, particularly within New Markets, during the period from late December 2011 to April 2012, reflecting the seasonally strong time for attracting online dating customers," the firm said.
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"From May 2012 onwards the company has scaled back its marketing expenditure, as is seasonally appropriate, in order to ensure that the increased revenues translate into stronger monthly profitability throughout the remainder of 2012. The board is confident that the company will meet current full-year market expectations."
The firm was particularly keen to emphasise its performance in the US, the world's largest online dating market, which it believes confirms that there is a significant opportunity for the business to grow within this region.
Although US operational costs are higher than in its other markets, the company is planning to improve on these by establishing more dedicated US management resources, and a permanent presence in the US towards the end of 2012.
Cupid added that it is encouraged by good signs in terms of the scalability of certain channels including mobile, which in the US currently accounting for around 30% of new user sign ups.
NR
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