SPARK NETWORKS REPORTS FIRST QUARTER 2008 FINANCIAL RESULTS
So much for Mark Brooks saying niche sites are growing more than mainstream dating sites, Yes I am green with envy of his TechCrunch connection. I have a lot to say about the post, which will have to wait.
Onward to Spark, let’s dig into the details in the comments, I have to get ready for the radio show.
Spark lost 36,000 customers and these numbers are negative overall. I’m surprised they couldn’t do a better job converting the unsubs over to other Spark properties.
Everyone knows that Spark is on the block and a lot of people have seen the dealbook. Spark continues the equivalent of spring training to lose the pounds they gained over the winter. Stock buybacks, cutting costs, moving CPA spend to more profitable marquee properties, etc.
“JDate.com grew for the third straight quarter following last year’s price increase and we continued JDate’s international expansion with the launch of JDate.co.uk for the United Kingdom. In addition, we accelerated our ad sales initiative, increasing advertising revenue 30% over the prior quarter.”
Not stellar growth, making up for less members with increased prices, sounds like Match.com. That is not a sustainable model and I am surprised the competition (including lots of ex-JDate employees!) have not been able to siphon off at least 20% of JDate’s subscribers.
Spark revenue down 11% to $15 million.
Operating expenses down 27%.
Net income for the first quarter of 2008 was $1.6 million, or $0.06 per share, compared to a net loss of $1.4 million, or $(0.04) per share, for the first quarter of 2007.
Average paying subscribers (3) for the Company, as a whole, in the first quarter of 2008 were 195,325, a decrease of 16% compared to 231,313 for the first quarter of 2007, and a decrease of 3% compared to 200,850 for the fourth quarter of 2007.
I bet this maps out to less marketing spend on American Singles.
Average paying subscribers for Jewish Networks were 93,411 during the first quarter of 2008, a decrease of 4% compared to 97,124 for the first quarter of 2007, and a decrease of 1% compared to 94,595 in the prior quarter.
Average paying subscribers for General Market Networks were 37,740 during the first quarter of 2008, a decrease of 49% compared to 73,485 for the first quarter of 2007, and a decrease of 10% compared to 41,763 in the prior quarter.
More to come after we all have some time to digest the data.
