Spark Networks

Recipient
SilverSingles

The recipient of the 2020 Dating Sites Reviews Editor's Top Pick - Senior Award is SilverSingles. This dating service which is accessible via their website at SilverSingles.com and available as a dating app on iOS and Android phones is designed for singles 50 years and older. It is owned by Sparks Network which is the second largest online dating company in North America in terms of subscribers (just behind the Match Group). Being part of a large international company that has been in business since the late nineties means they have a lot of experience on what works and what does not when it comes to online dating. A lot of research went into the design and features of this service and it shows when you sign up for the first time.

Image: Business Wire

Spark Networks announced that Eric Eichmann will take over as CEO of Spark Networks, replacing Jeronimo Folgueira.

“I could not be more excited to join Spark at this time,” Eichmann said in a statement, published in Yahoo! Finance News. “Spark has a tremendous brand portfolio to help people find love across the globe…I look forward to working with the great team at Spark and leading the next chapter of its development.”

Image: Newsweek

In today's highly competitive business environment, companies are constantly fighting for consumers’ attention and loyalty. Those that manage to secure it set themselves on a path to market domination and financial success. Those that cannot face an uphill battle. Though we’re used to hearing that “the customer is always right,” the reality is that not every company lives by that credo.

Few industries are more competitive today than the online dating industry. From the major players of Match Group and Spark Networks to countless hopeful startups, dating services around the world are locked in a fierce feud to become the go-to matchmaker of tech-savvy singles.

How Couples have met from 1940 to 2017

Image: Spark Networks

Despite completing a $255 million acquisition of Zoosk in July, and becoming the second-largest online dating company in North America by revenue, Spark Networks has struggled this year. Shares of Spark have lost more than a third of their value thus far in 2019 and over 50 percent since the deal to acquire Zoosk closed on July 1. To address its poor stock market performance, Spark Networks has released an open letter to its shareholders.

The letter expresses disappointment at the company’s falling stock price and suggests that the losses were primarily due to “concentrated share sales by a minority of our shareholder base,” not the result of under-performance. Spark Networks speculates that the shareholders in question were primarily early stage investors in Zoosk and Affinitas who were looking for liquidity after 10 years.

Spark Networks explains in part their optimism, by pointing to recent studies that shows that the online dating industry continues to grow in leaps and bounds. In 2010 online dating was responsible for 20% of how couples met. By 2013 it had past "met through friends", and by 2017, had reached 39% with no signs of slowing down.

America's second largest dating company, Spark Networks SE, has reported its first half 2019 financial results. The company's growing portfolio of premium and freemium dating apps includes EliteSingles, Jdate, Christian Mingle, eDarling, JSwipe, Silversingles and, following an acquisition earlier this year, Zoosk.

For the first half of 2019, Spark Networks reported revenue of €49.2 million, a decrease of 7.1% from €53.0 million in the first half of 2018, and a decrease of 4.5% from €51.5 million in the second half of 2018. The company attributes the decline in revenue to a 9% drop in Average Paying Subscribers year-on-year.

Net Loss was €4.9 million in the first half of 2019. This is an increase of €3.8 million compared to €1.1 million in the first half of 2018, and an increase of €2.9 million compared to €2.0 million in the second half of 2018. Spark Networks attributes the year over year increase in Net Loss to the higher professional fees associated with its $255 million acquisition of Zoosk.

Image: Zoosk

Online dating conglomerate Spark Networks announced its purchase of Zoosk for $258 million USD. The popular dating app was acquired with a combination of cash and stock, and Spark will have full ownership of Zoosk shares.

According to the terms of the deal, Spark will issue 12,980,000 ADSs (American Depository Shares) to former Zoosk shareholders, valued at $152 million based on the closing price of Spark ADSs of $11.78 on June 28, 2019. It also provides for a cash consideration of $150 million, subject to adjustment, according to the company’s press release. Former Zoosk shareholders owned 49 percent of the company.