Contributed by: ElyseRomano on Tuesday, May 26 2015 @ 06:23 am
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Spark Networks – owner of ChristianMingle.com, JDate.com, BlackSingles.com, and more – has released financial results for the first quarter of 2015.
Revenue in the first quarter of 2015 was $13.5 million, a decrease of 19% compared to the year ago period and a 5% decrease from the prior quarter. The decrease was primarily driven by a 25% drop in average paying subscribers, particularly in the Christian Networks segment.
Direct marketing expenses in the first quarter of 2015 were $6.1 million, a decrease of 47% compared to the year ago period and an 18% increase compared to the prior quarter. Much of the decrease resulted from a new marketing strategy for Christian Networks.
Contribution in the first quarter of 2015 was $7.4 million, an increase of 42% compared to the year ago period and a 19% decrease compared to the prior quarter. Again, Christian Networks was the primary driver of the year over year increase. The sequential decrease was driven by higher direct marketing expenses for Christian Mingle.
Excluding direct marketing expenses, cost and expenses in the first quarter of 2015 were $6.5 million, a decrease of 19% compared to the year ago period and a 10% increase compared to the prior quarter.
Net income in the quarter was $723,000, or $0.03 per share, compared to a net loss of $2.9 million, or negative $0.12 per share, in the year ago period and income of $3.9 million, or $0.16 per share, in the prior quarter.
Adjusted EBITDA excluding nonrecurring charges was $1.8 million compared to a loss of $2.1 million in the year ago period and income of $4.1 million excluding nonrecurring charges in the prior quarter.
Michael Egan, Chief Executive Officer of Spark Networks, is pleased with the company's Q1 results. “The first quarter of 2015 was all about getting Spark Networks back in shape and starting to walk again,” he said in a conference call[*1] . “We are making very solid progress on our goals for the year.”
For the rest of 2015, Spark Networks plans to focus on efficient and profitable member acquisition, and on rebuilding its two core brands, ChristianMingle and JDate.
“It is very clear that we as a company are making transformable changes in people's lives,” says Egan. “It is also clear however that our underlying products and in some cases our underlying processes haven't successfully kept up with the time.”
Expect to see a more modern ChristianMingle and JDate debut later in 2015, with better technology, improved marketing strategies, and re-designed web presences.