Revenues up across all trading areas on boom in smart phone-led subscriptions
Scottish online dating agency Cupid has grown revenues in all its trading areas as it cashes in smartphone users signing up to its services.
The Edinburgh-based group is to expand its operations in the USA which it describes as a “significant opportunity” for growth.
At present 30 per cent of new subscribers in the USA come via mobile phones.
In its pre-close trading statement, Cupid confirmed sales and subscriptions have been boosted in all three of its geographical territory segments in the half year to the end of June.
Within the firm’s New Markets segment - 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 2011, which stood at £22.2 million.
In the Established Markets territory - UK, Australia, New Zealand, Ireland - revenues have continued to grow at or above market growth rates of 5-10 per cent; whilst revenues from Developing Territories - Brazil, India - continue to grow from a relatively low base as planned.
Cupid said the growth in revenue has been achieved through increased marketing spend – particularly from late December 2011 to April 2012, reflecting the seasonally strong time for attracting online dating customers.
From May 2012 advertising has been scaled back to ensure that the increased revenues translate into stronger monthly profitability throughout the remainder of 2012.
The company said it was particularly pleased with revenue growth in the USA, the world’s largest online dating market.
The statement said: “This 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 trading update repeated the view - expressed at the AGM on 15 June 2012 – that the board is confident of meeting current full year market expectations.