Revenue
Q1 2008 90.5, Q1 2007 82.4, Growth 10%
Operating Income Before AmortizationQ1 2008 10.1, Q1 2007 8.4, Growth 21%
Operating IncomeQ1 2008 7.1, Q1 2007 8.2, Growth -13%
Revenue growth was driven by an 8% and 12% increase in international subscribers and revenue per subscriber, respectively, and 6% growth in revenue per subscriber domestically where subscribers declined slightly. Operating Income Before Amortization growth reflects lower customer acquisition costs as a percentage of revenue in international markets. Domestic customer acquisition costs increased reflecting increased spending related to Chemistry.com, which continues to grow subscribers, partially offset by reductions in other domestic marketing spend. Operating income for the current period reflects amortization of non-cash marketing of $2.8 million.
Domestic decline in subscribers, pumping money into Chemistry, leaning on international growth, is this the beginning of a longer-term trend?
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{ 1 comment… read it below or add one }
What trend would that be? An industry trend or a “Match” trend….
seems to be similar to last quarter. Less consumer aquisitions but squeezing a few more pennies out of the current consumers. That’s a “match” trend.
:)