Spark Networks, the Berlin-based umbrella to dating brands including Jdate, Elite Singles and Attractive World, has released its second half and full year earnings for 2018.
Revenue for the second half of the year came in at €51.5 million, up 18.4% from €43.5 million in the second half of 2017. Net loss for the half was $2.0 million; an improvement on the $3.9 million lost in the second half of 2017.
Adjusted EBITDA was €8.5 million in the second half of 2018, compared to €4.2 million in the second half of 2017 – an increase of €4.3 million. Increases in revenue and profit are attributed to the late 2017 Affinitas-Spark merger by the company.
Average Paying Subscribers grew 21.3% to approximately 477,800 in the half, while Monthly ARPU decreased 2.3% to €17.98.
For the full year, revenue was €104.6 million, an increase of 22.2%. Adjusted EBITDA for 2018 was €11.0 million, compared to €6.6 million in 2017 – an increase of €4.4 million.
Spark ended the year with €11.1 million in cash and €12.1 million in debt.
Jeronimo Folgueira, CEO of Spark Networks said: “2018 was our first full year as a public company, following the close the of the Affinitas / Spark merger in November 2017.
“Looking back, I am pleased with our ability to integrate and stabilize the Spark Networks, Inc. operations while also growing our consolidated Revenue, Net Income and Adjusted EBITDA to achieve the 2018 financial guidance we set in August.
“As we look ahead, we are excited to add Zoosk to our portfolio of brands and to begin the post-merger integration work that will enable us to achieve the profitability goals we have set for 2020 and beyond.”
Spark’s acquisition of Zoosk is expected to close in Q3 2019. The $255 Million deal breaks down into $150 million in American Depositary Shares, $95 million net cash consideration for Zoosk shareholders and a $10 million deferred cash payment.
The dating group has set itself the 2020 target of $50 million in Adjusted EBITDA.
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