Contributed by: ElyseRomano Friday, May 11 2018 @ 09:20 am
The report comes nearly six months after Affinitas and Spark Networks Inc. merged to form Spark Networks SE. The companies’ combined portfolios position Spark Networks SE as a leader in the serious segment of the dating market with a global network of nearly half a million monthly paying subscribers across 29 countries.
"With the close of the merger between Affinitas GmbH ("Affinitas") and Spark Networks, Inc. ("Spark") in November 2017, we have created a pure-play leader in the dating industry with increased scale and a portfolio of well-known brands," said Jeronimo Folgueira, Chief Executive Officer of Spark Networks SE, in a statement. "We have only just begun to realize the benefits of the merger, as the results we reported today include just two months of Spark's performance.”
For the six months ended December 31, 2017, total revenue was €43.5 million, an increase of 15.0% compared to the six months ended December 31, 2016, and a 3.3% increase from the six months ended June 30, 2017. The year over year and sequential increases were driven by intensified marketing efforts in North America and the addition of Jdate and Christian Mingle following the merger.
Net Loss during the same period was €(3.9) million, a €4.6 million decline versus the six months ended December 31, 2016 and a €2.2 million decline from the six months ended June 30, 2017.
Adjusted EBITDA was €4.2 million, a decrease of €118 thousand versus the six months ended December 31, 2016, and an increase of €1.9 million from the six months ended June 30, 2017.
For the full year 2017, Spark Networks SE revenue increased 16.5% from 2016’s €73.5 million to €85.6 million, again as a result of the Affinitas / Spark merger and effective marketing campaigns in the North American region.
Net Loss for the full year 2017 was €(5.6) million, a €6.3 million decline versus the previous year. Adjusted EBITDA was €6.6 million, an increase from €5.9 million in the year ago period.
Highlights from the earnings call include:
Looking forward, Spark Networks expects $127 – $133 million of revenue and $13 – $18 million in Adjusted EBITDA in 2018. The company will dedicate the remainder of this year to positioning Spark for sustainable, long-term, and profitable growth.
"First, we aim to build on the consistent growth momentum that Affinitas has achieved over the last several years, driven primarily by the success of EliteSingles,” explained Folgueira. “Second, we are taking actions to stabilize and grow the Christian and Jewish brands that were added to our portfolio through the merger with Spark. Finally, we will launch and grow new, complementary brands in key markets such as North America.”
"Capitalizing on the growth opportunities in front of us is an exciting challenge, and I am looking forward to providing updates as we execute against our 2018 plans," he concluded.