Spark Networks SE Reports First Half 2018 Results

Spark Networks
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Spark Networks SE, a leading provider of niche dating sites including EliteSingles, Jdate, and Christian Mingle, has revealed its first half 2018 financial results.

In a press release, Chief Executive Officer Jeronimo Folgueira called it “a very productive first half of the year” focused on building a strong foundation for sustainable, long-term revenue growth.

“Our growth strategy remains focused on EliteSingles, our newly added Jdate, JSwipe and Christian Mingle brands, and the recently launched SilverSingles brand,” Folgueira said. “All three of these areas performed well in the first half of the year and we expect to carry our current momentum through the second half of 2018 and into 2019.”

EliteSingles, the largest Spark Networks SE brand, accounted for nearly 60% of total revenues in the first half of 2018. On a constant currency basis, Elite North America grew in excess of 16% year-over-year, thanks to a three-year initiative to expand the EliteSingles brand in North America.

Stabilizing and growing Jdate, JSwipe, and Christian Mingle -- which were acquired last year during a merger between Affinitas GmbH and Spark Networks, Inc. -- has also been a priority in 2018.

“Our initial work has focused on increasing the monetization of these brands, and we have seen monthly Average Revenue Per User, or ARPU, increase by over 5% since the merger closed,” Folgueira said. “These ARPU improvements helped drive stable revenue in local currency throughout the first half of 2018.”

The newest brand in the Spark Networks SE portfolio is SilverSingles. Launched in mid-December 2017 to serve singles over 50, SilverSingles has amassed over 35,000 paying subscribers and contributed 8% of total revenue in the month of June. Folgueira expressed optimism about the brand’s long-term revenue and profitability potential in the second half of 2018 and into 2019.

Highlights for the six months ended June 30, 2018 include:

  • Total Revenue: €53.0 million, an increase of 25.9% compared to the six months ended June 30, 2017, and a 21.8% increase from the six months ended December 31, 2017
  • Contribution: €20.4 million, an increase of 39.7% compared to the six months ended June 30, 2017, and a 16.5% increase from the six months ended December 31, 2017
  • Net Loss: €(1.1) million, a €557 thousand reduction from the Net Loss in the six months ended June 30, 2017 and a €2.7 million reduction from the Net Loss in the six months ended December 31, 2017
  • Adjusted EBITDA: €2.4 million, an increase of €62 thousand versus the six months ended June 30, 2017, and a decrease of €1.8 million from the six months ended December 31, 2017
  • Cash: €8.1 million in cash and cash equivalents on June 30, 2018, compared to €6.7 million at June 30, 2017. On June 30, 2018, the company had €14.0 million of debt outstanding.
  • Total Number Registrations: 5,352,521. This is a 29% increase over the first half of 2017.
  • Average Paying Subscribers: 489,024. This is a 34% increase over the first half of 2017.

Remember when comparing 2018 with 2017 numbers this is before the merger of Spark Networks and Affinitas so that is part of the reason why the growth in some of the numbers is so large.

Going forward, Spark Networks SE plans to continue prioritizing long-term revenue growth and stabilizing the new brands acquired in the 2017 merger.

“While there is a lot of work left to do at Spark, it's encouraging to see results that confirm our growth initiatives are working,” concluded Folgueira. “We are very excited by our performance thus far in 2018 and are confident that we can continue to grow the business into 2019 and beyond."