21 Jun 2013 07:00
| Date: | 21 June 2013 |
| On behalf of: | Cupid plc ('Cupid', the 'Company' or the 'Group') |
| Embargoed until: | 7.00am 21 June 2013 |
Cupid plc
AGM Statement
George Elliott, the Chairman of Cupid plc (AIM: CUP), a global leader in online dating, will make the following statement at the Company's Annual General Meeting today:
"Trading update
Half year ("H1 2013") revenues are expected to be £43m. As previously announced, the marketing spend in the first half will be slightly higher than in 2012. As was the case in 2012, our marketing spend is first half weighted and the Group expects to see the earnings benefits of this investment flowing through into H2. We continue to focus on devising and implementing a number of initiatives aimed at improving the customer experience and the quality of traffic. Whilst the changes have a short term financial impact, the Company is confident that the strategy will increase life time value of customers and reduce churn rates in the medium term. The resulting EBITDA for H1 2013 continues to be expected at around £2.5m. Of the £2.2m due from related parties, £1.9m has been received and the £0.3m balance remaining will be received before the end of June 2013. The Group's cash position at the end of June will be in excess of £10m.
Strategy
The Group has two distinct product areas - Casual Dating and Mainstream/Niche Dating. Over the past two years the Group has consistently focused its M&A and brand investment on fast growing niche dating sites such as UniformDating.com and LoveAgain.com and mainstream sites such as Cupid.com and Amour.com. Going forward the Group intends to focus more resource into developing these assets plus new products such as the social media driven sites, Canoodle.com and YOLO.com, which will be launched later in the year. Cupid has received a number of recent approaches for the Casual Dating assets and is currently exploring the proposed opportunities with these third parties.
The Company continues to be proactive in providing innovative functions for its users, both to enhance the customer experience and to create a safer user environment. A recent example of this is the launch of services such as 'safe mode', a function which allows the user to choose with whom they interact.
Independent review of operating practices and members' database
The independent review of the Group's member database and operating practices, instigated by the Board and undertaken by a Big Four accountancy firm, is due to be completed by the end of June 2013. The conclusions will be announced no later than Monday 1st July 2013. There will be an institutional investor and analyst call on the day of announcement.
The Group has also undertaken a further, separate review by a leading legal team. A number of recommendations have been implemented as a result, including clearer guidelines for customer service staff interactions with customers and clearer identification of Cupid staff when online with customers. This should allay any concerns with regards to the staff profiles that are in place and help to detect and identify any issues.
In Summary
The Board would like to thank shareholders for their continued support. Cupid is one of the leading providers of online dating services - a market that is dynamic and fast growing. Much work has been done and investment made, particularly in the last six months, to improve the customer experience. Whilst this has impacted short term profits, we are building a robust, scalable business for the longer term to realise the true value that exists in the asset."
For further information please contact:
Cupid plc | Tel: +44 (0)131 526 3600 |
Bill Dobbie, CEO Niall Stirling, CFO | |
| |
Peel Hunt LLP (Nominated Adviser and Broker) | Tel: +44 (0)207 418 8900 |
Richard Kauffer Daniel Harris | |
Redleaf Polhill | |
Rebecca Sanders-Hewett Dwight Burden David Ison | Tel: +44 (0)207 382 4730 cupid@redleafpr.com |
Notes to Editors
§ Cupid plc listed on AIM in June 2010 and is a leading provider of online dating services
§ Cupid has built significant and growing revenues in 15 countries.
§ Cupid offers a wide variety of online dating services allowing members to interact with each other and access the content available on the Group's websites. These websites are intended to appeal to dating users of diverse ages, cultures and social interest groups. The Group's most heavily visited websites include www.cupid.com, www.flirt.com, www.benaughty.com and www.girlsdateforfree.com. The Group also promotes the niche brands www.datingforparents.com, www.indiandating.com, www.loveagain.com and www.uniformdating.com.
§ Cupid plc products are available across the web and also via mobile application stores.
§ Further information on the Company can be found at www.cupidplc.com.