5 Jul 2012 07:00
| Date: | 5 July 2012 |
| On behalf of: | Cupid plc ('Cupid', the 'Company' or the 'Group') |
| Embargoed until: | 0700hrs |
Cupid plc
Pre‐Close Trading Update
Cupid plc (AIM: CUP), the online dating company, today issues a pre‐close trading update for the six month period to 30 June 2012.
The Board is pleased to report that during the first half of 2012, the Company has again grown revenues in all three of its geographical territory segments.
Within New Markets (USA, Canada, France, Italy, Spain, Germany) revenues for the first half of 2012 are expected to be similar to the level achieved in the whole of FY 2011 (FY 2011: £22.2Million). Revenues within Established Markets (UK, Australia, New Zealand, Ireland) have continued to grow at or above market growth rates of 5‐10% as planned, whilst revenues from Developing Territories (Brazil, India) continue to grow from a relatively low base as planned.
This growth in revenue has been achieved through increased marketing spend, particularly within New Markets, during the period from late December 2011 to April 2012, reflecting the seasonally strong time for attracting online dating customers. From May 2012 onwards the Company has scaled back its marketing expenditure, as is seasonally appropriate, in order to ensure that the increased revenues translate into stronger monthly profitability throughout the remainder of 2012. As stated at the AGM on 15 June 2012, the Board is confident that the Company will meet current full year market expectations.
The Board is particularly pleased with revenue growth in the USA, the world's largest online dating market, which confirms that there is a significant opportunity for the business to grow within this region. Although USA operational costs are higher than in its other markets, the Company plans to improve on these by establishing more dedicated USA management resources, and a permanent presence in the USA towards the end of 2012.
The Company's marketing metrics continue to be in line with the Board's expectations and encouragingly there are good signs in terms of the scalability of certain channels including mobile. In the USA mobile is currently accounting for approximately 30% of new user sign ups.
The Company intends to report its results for the six months ended 30 June 2012 on 3 September 2012.
For further information please contact:
Cupid plc | Tel: +44 (0)131 220 1313 |
Bill Dobbie, CEO Mark Doughty, CFO
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Peel Hunt LLP (Nominated Adviser and Broker) | Tel: +44 (0)207 418 8900 |
Richard Kauffer Daniel Harris
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Redleaf Polhill | Tel: +44 (0)207 566 6720 |
Henry Columbine Marlena Ong | cupid@redleafpolhill.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, www.girlsdateforfree.com and www.datetheuk.com. The Group also promotes the niche brands www.datingforparents.com, www.speeddater.com and www.maturedating.co.uk.
§ The majority of services are also available via Apple and Android App Stores for mobile users as well as through their own Facebook apps, e.g. http://apps.facebook.com/cupidcom and http://apps.facebook.com/benaughtynow.
§ Further information on the Company can be found at www.cupidplc.com.