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By Arjun Panchadar
(Reuters) – Match Group Inc. Expects Adjusted Earnings for Current Quarter Below Analysts' Estimates Tuesday, Affected by Rising Spending by Tinder and Its Other Dating Apps, Dropping Its Shares by 10% in Trade d & # 39; after-market.
Match Group, which plays with PlentyOfFish and Match.com, has invested heavily in bringing its cash cow to emerging markets and promoting its other dating services as competition in the dating market grows.
Marketing costs are expected to increase by about 20% compared to Tinder and its other brands such as Hinge and Peers.
The company expects fourth quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be in the range of $ 165 million to $ 170 million, lower than estimated at $ 170.9 million, according to IBES data. of Refinitiv.
The company also expects sales of $ 440 million to $ 450 million in the fourth quarter, lower than estimated at $ 454 million, mainly due to the attractiveness of approximately $ 6 million related to dollar strength as well impressions.
The legislation was put in place by the European Union in May to protect personal information and forced online gamblers to ensure that they have permission from users to manage their personal data.
Tinder – where users slid left or right on their phone to signal their interest in someone – added 344,000 average subscribers in the last quarter, for a total of 4.1 million.
The total number of Match Group subscribers rose to 8.1 million in the third quarter.
Match Group said it expects now that the annual business figure will reach the peak of previous forecasts, which ranged from $ 1.68 billion to $ 1.72 billion. Analysts expected revenue of $ 1.72 billion.
Net income attributable to shareholders fell to $ 130.2 million, or 44 cents per share, in the quarter ended September 30, from $ 287.7 million, or 98 cents per share, a year earlier.
On an adjusted basis, the company gained 39 cents a share, above analysts' estimates of 36 cents.
Total revenue increased 29.3% to $ 443.9 million, exceeding estimates of $ 438.1 million.
Dallas-based Match shares have risen nearly 90% in the past 12 months, despite a 22% drop in May caused by Facebook's plans to create its own dating service.
Shares of the company fell 9.4% to 46.64 dollars.
(Report by Arjun Panchadar and Pushkala Aripaka in Bengaluru, edited by Shounak Dasgupta, Bernard Orr)
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