Match.com Q3 2009 Financials

by David Evans on October 28, 2009 in Finance

Match.com grew U.S. subscribers 9% in Q3, excluding the addition of approximately 254,000 PeopleMedia.

Match revenue down to $81.0M from $93.5M, a 13% drop.

Paid subscriptions in the US up 5% to 1,342,000.

Paid Subscribers Excluding Match Europe up 31% to 1,068,000.

Revenue declined reflecting the sale of Match Europe to Meetic on June 5th, partially offset by solid growth in the U.S. business and a $6.4 million contribution from PeopleMedia (acquired July 13th). PeopleMedia revenue for the quarter was negatively affected by the write-off of $3.6 million of its deferred revenue, as required by purchase accounting rules. Excluding the results of Match Europe and PeopleMedia, revenue grew 5% during the quarter driven by a 9% increase in U.S. subscribers due to ongoing improvements in product and execution.

Operating Income Before Amortization declines reflect the absence of Match Europe and increased marketing expenses, partially offset by the inclusion of PeopleMedia results, which were negatively impacted by the aforementioned write-off of deferred revenue. Excluding both Match Europe and PeopleMedia, Operating Income Before Amortization grew slightly. Operating income comparisons benefited in 2009 from $6.1 million of amortization of non-cash marketing in the prior year period, partially offset by an increase of $2.7 million in amortization of intangibles. The increase in amortization of intangibles is due to the acquisition of PeopleMedia.

I believe the number of paid subs at Match been in the 1.3 million to 1.4 million range for several years now. As we have known for a while, Match has saturated the US marketplace and doesn’t seem to be able to move the needle much. Relying on International deals to drive growth was the next logical move, a view shared by eHarmony as well.

Read the full IAC 3Q 2009 quarterly earnings report.

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