Spark Networks Reports Second Quarter 2015 Financial Results

Christian Mingle
  • Tuesday, August 18 2015 @ 08:12 am
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Spark Networks, owner of a handful of niche dating sites like ChristianMingle.com, JDate.com, and BlackSingles.com, has released financial results for the second quarter ended June 30, 2015.

The company has good news to report, primarily centered around attempts to turnaround business after growth stalled for ChristainMingle and JDate. Highlights include:

  • Significant, double-digit improvement in win-back rates with key cohorts
  • Double-digit improvement on ChristianMingle TV spend efficiency
  • New communication platform driving increased user engagement
  • Subscriber base stabilized on both JDate and ChristianMingle in July versus June
  • Reiterating commitment to subscriber growth in Q4

Chief Executive Officer Michael Egan stated, "We are pleased to have made considerable progress toward transforming our business during the second quarter, and remain on track to return to sequential subscriber growth across both JDate and ChristianMingle by Q4.”

The expense reduction and improved efficiency program Spark Networks announced in 2014 is showing signs of success so far. Excluding direct marketing expenses, cost and expenses in the second quarter of 2015 were $7.1 million, a decrease of 20% compared to the year ago period. Direct marketing expenses in the second quarter of 2015 were $5.3 million, a decrease of 33% compared to the year ago period and a 12% decrease compared to the prior quarter.

On the downside, revenue in the second quarter of 2015 was $12.3 million, a decrease of 22% compared to the year ago period, and a 9% decrease from the prior quarter. The decreases were primarily driven by a loss in paying subscribers, particularly for the Christian and Jewish Networks segments.

Spark Networks plans to continue its “crawl, walk, run” strategy for the remainder of 2015. A re-design and re-architecture of the company's core websites is in the works. An updated JDate experience is expected in early Q4, followed by an updated ChristianMingle experience in the latter part of that quarter.

Other product improvements are in the works concurrently. An upgraded communication platform has dramatically increased users' interactions, and improved mobile offerings have also seen a positive response.

In addition to improving the product, Spark Networks is working hard to improve its marketing strategy. Changes have been made to the customer acquisition and retention programs with good results. The company has seen in excess of 10% efficiency gains with their ChristianMingle television marketing spend, and July 2015 generated more initial registrations on JDate than any month since the first quarter of 2014.

"It is important to note that this is just the start,” stated Michael Egan. “As we roll out new and refreshed products, and continue to enhance our operational capabilities, we expect to drive continued improvements in customer growth and retention.”

For more on Spark Networks 2 most popular dating services you can read our Christian Mingle review and our JDate review.