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Match Group Performing Well, Despite IAC Decline

IAC

IAC saw a 5% decline in quarterly revenues, mostly due to underperforming search businesses, but their dating division has continued its strong growth.

Their total sales fell by 5.3% compared to last year, to $724.5m.

This led to shares dropping 5.5% to $65.04, their biggest one-day decline since October 30 2013.

Despite this, their dating businesses like Match, OkCupid and Tinder – that were recently separated into Match Group – saw sales increase 12% to $203.9m.

In an earning calls to investors yesterday, Gregory Blatt, Chairman of Match Group, spoke about whether Tinder would soon participate in this growth, saying:

“Tinder is still very much in investment mode. And we haven’t fixed on the timing or exact nature of the business model yet. 

“It’s a dating product that has taken off as fast as any I can remember. Right now, we’re focused on doing the things necessary to make sure it takes route in an enduring way, but if does, we believe it can also be a meaningful contributor down the line.”

IAC’s decline is mostly due to recent changes by Google which led to their search division underperforming – missing estimates in three out of four quarters, and yesterday announcing an 8% decline.

Google recalibrated their search algorithms and advertising prices, so IAC sites like Ask.com were pushed down on Google’s results.

Last October, Blatt said the move: “seems to have most negatively impacted publishers with concentrations of advertising in a disparate range of categories and with a user base with less disposable income than the average Internet audience.”

IAC tried to strengthen this search business in recent years, buying About.com for $300m in 2012. 

Simon Edmunds

Simon is the former editor of Global Dating Insights. Born in Newcastle, he has an English degree from Queen Mary, London and after working for the NHS, trained as a journalist with the Press Association. Passionate about music, journalism and Newcastle United.

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