Finances

On March 4th, 2010 Spark Networks reported quarter 4 earnings for 2009 and their year end results (which was on Dec. 31, 2009). Revenue for the fourth quarter was $11.1 million which was a decrease of 16% from the same quarter last year. Spark Networks reported a lost for this quarter of $9.6 million and for the full year, a net loss of $6.4 million. Total revenue for 2009 was $45.4 million; in 2008 it was $53.7 million. CEO Adam Berger is quoted in the press release about this the losses:

It’s no surprise to anyone following us this past year that 2009 was extremely challenging for us as revenue declined by 21% with nearly half of the decline coming from our highly profitable Jewish Networks segment ... We accelerated our cost cutting program to offset the revenue decline but were unable to overcome the $8.9 million contribution1 decline and ended up suffering a $5.7 million decline in Adjusted EBITDA

Average paying subscribers for Spark Networks was 168,646 for quarter 4 2009 which is a 5 percent decrease when compared to quarter 4 in 2008. For the full year, average paying subscribers was 166,267. This is down 11 percent from 186,957 in 2008.

While Jewish Networks revenue fell 11 percent to $7.1 million, their subscribers grew by 4 percent to 90,567 in quarter 4. Average paying subscribers for General Market Networks (Spark.com and others) was 9,594. This is a decrease of 58 percent when compared to the fourth quarter of 2008. The Other Affinity Networks (MingleMatch) had better subscriber news and posted a 4 percent increase in subscribers to 67,725 during quarter 4 2009.

While Spark Networks continues to struggle, their balance sheet shows as of December 31, 2009 cash and cash equivalents of $6.2 million with no outstanding debt.

For the full 2009 Q4 release visit Spark Networks News Room.

Related Story: Spark Networks Third Quarter 2009 Financials

In 2005 Great Hill Partners bought about 25 percent stake in Spark Networks. Just recently we learned that the PE firm offered to take Spark Networks private and buy all the shares it does not own. This would cost them about $64 million USD. Spark Networks announced their intentions to evaluate the acquisition proposal.

Spark Networks stock in 2008 was worth about $131 million. Since then they have struggled and seen their value drop to about $84 million. Spark Networks flagship dating site AmericanSingles.com during this time saw a huge drop in membership numbers (it has since been renamed Spark.com). Other dating sites they own like JDate.com have remained strong though.

Great Hill Partners stated that if they took Spark Networks private, the company could then focus on long term growth without worrying about pleasing stock holders with short term profits.

For the full story read Gigaom.

There is more bad news for FriendFinder Networks regarding their IPO (see Story). FriendFinder was suppose to start trading on the New York Stock Exchange this Thursday under the symbol FNN. They now plan to launch sometime the following week. The dip in the market last week is said to take partial blame as well as some last-minute questions from the Securities and Exchange Commission. These questions are not uncommon and can delay the process of launching a deal.

For more information, read the Wall Street Journal.

Avid Life Media Inc. is the parent company of several online dating sites. This includes the popular affairs site AsheleyMadison.com, as well as EstablishedMen.com and CougarLife.com. Avid Life Media is looking to raise $60 million with its possible debut on the Toronto Stock Exchange (TSE) in the coming months. In 2009 Avid Life Media earned $30 million in revenue and $8 million in EBITDA. The dating site Ashley Madison, currently accounts for only 15 percent of the total revenue earned by Avid Life Media.

Avid Life Media plans to use some of the money raised to buy an online advertising sales company called Moxy Media.

In late October Zoosk was celebrating 40 million members (see Story) and had already received $10.5 million in funding over the last year or so. On December 3rd they announced that they had secured an additional $30 Million in Series D Funding. This round of funding was led by the oldest venture capital firm in the United States, Bessemer Venture Partners. David Cowan, a partner at Bessemer Venture Partners will be joining Zoosk's Board of Directors as part of the deal.

Zoosk was launched 2 years ago in December of 2007 by Shayan Zadeh and Alex Mehr (who are now the co-CEOs). They plan to use the additional dollars to continue to build and expand the dating service. Money will also be spent on both online and offline marketing campaigns to increase Zoosk's exposure. Plus, there are rumors of expanding Zoosk to new platforms on the mobile front, including an iPhone App.

For more on the story you can read the press release. To find out more about this social dating community, read our review of Zoosk.

On November 9th Meetic released the financial results for the first 9 months of 2009. Revenue earned during this period totalled 117.2 million Euros (over $174 million USD). This is a 20 percent increase over the same period last year. From this income, the purchase of Match.com's UK site this year added 19 million Euros in revenue. 96 percent of all revenue was from sources in Europe.

Meetic's dating sites subscriber base totalled 970,623 as of September 30th, 2009. This is an increase of about 25,000 subscribers from the same date in 2008. No mention of Match.com's UK site is here so it is unsure if their subscriber numbers have been included in the Meetic 2009 numbers. We estimated that Match.com UK had about 291,000 paying subscribers as of quarter 2, 2009, at the time of the sale (see Story).

Earnings Before Interest, Taxes and Amortization (EBITDA) came to 24.1 million Euros over the first 9 months. This is an EBITDA margin of 20.5 percent. As of September 30th, 2009 Meetic had a net cash surplus of 41 million Euros and the only debt on the books was from the Match acquisition which is estimated at €7.1 million.

Expect the quarter 4 2009 financials and annual revenue for Meetic to be published on the 11th of February 2010.

News first spotted on OPW. For more information, read the full Meetic Q3 2009 Financial report.