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Match Group's sales grew strongly in the first quarter thanks to an increase in the number of Tinder subscribers. The company, whose dating applications portfolio also includes Match.com, PlentyOfFish, OkCupid and Hinge, among others, said in its earnings report today that the quarterly total business figure had risen 14% to $ 465 million. If foreign exchange effects were not taken into account, growth would have been 18%.
Net income attributable to shareholders increased 23% to $ 123 million, or 42 cents per share, from $ 99.7 million, or 33 cents over the same period last year. Earnings from operations increased 6% from $ 112 million to $ 119 million. In the first quarters of 2019 and 2018, Match Group recorded a tax saving of $ 28 million and $ 12 million, respectively, related to the exercise of vesting rights to share-based awards.
During the first quarter, Tinder the average number of subscribers was 4.7 million, compared with 384,000 in the previous quarter and 1.3 million from one fiscal year to the next. In total, the average number of Match Group subscribers increased by 16% to € 8.6 million, compared with 7.4 million a year earlier. Match Group said that the growth in the number of subscribers and the increase in average revenue per user (ARPU) at Tinder had boosted its revenue, but that this was partially offset by the currency effects. The ARPU is stable compared to the previous year, but without the exchange rate effects, it would have increased by 4% to 60 cents.
The company said its adjusted EBITDA growth (earnings before interest, taxes, depreciation and amortization) was affected by the higher cost of revenue generation, particularly integrated purchase costs, as the revenue comes more and more from mobile app stores, by lower selling and marketing expenses. Adjusted EBITDA increased 13% from $ 138 million to $ 155 million.
During the first quarter, Match Group restructured its management team by appointing three new general managers to oversee Asian regions to increase the number of users and focus on international growth. The presentation of its first quarter results highlighted the opportunities in India, where Tinder is the most profitable Android app according to App Annie; Japan, where Match Group now has two of the top five dating applications (Peers is number one in Japan, while Tinder ranks fourth); and in Southeast Asia, where Tinder is now among the top 10 ranked apps in six countries.
The company did not disaggregate its results by country, but in the first quarter it had a total of 8,613,000,000 average subscribers, including 4,361,000 in North America and 4,252,000 internationally. The total ARPU is 58 cents: 60 cents in North America and 56 cents internationally. Total revenues were $ 464.6 million, of which $ 234.8 million was in North America and $ 216.2 million in direct revenue. Indirect revenue is income that does not come directly from Match Group end-users. returned.
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