IAC will monetise Tinder by the end of 2014, estimating that the app could generate $75m in its first year.
In a conference call to discuss their second quarter results, Chairman of Match Group, Greg Blatt, discussed their plans for Tinder.
He said that with Tinder’s current userbase, if you monetised North America and Europe at the same rate they monetise OkCupid – and at a 25% rate elsewhere – Tinder could make $75m EBITDA in a year.
Blatt said: “It’s growing like weed. And the use is up 140% year-to-date – with June over May growth almost 2x May over April growth. So, it’s growing very strong.”
He also revealed that Tinder’s monetisation strategy would be similar to their other dating sites – using a combination of three different payment methods.
“There is going to be ad revenue, and there is going to be some form of recurring revenue, and there is going to be some form of our cart revenue. And that’s true for every one of our products, the mix is different from product to product.”
In the call, Blatt spoke of their acquisition of Friends Scout, saying they had long looked for an opportunity to take control of the German market.
With the acquisition, IAC “got what we wanted, at the price we wanted” he said, and it has taken them from fourth place in Germany, to first place.
However, very little was said about IAC’s acquisition of HowAboutWe – which they bought in a surprise move last month.
Only one mention was made to the New York-based site, Blatt saying the acquisition was “not strategic” but rather “high-value in terms of price for what you get.”
Overall, IAC’s second quarter earnings saw revenues decrease 5% – a loss of $18m.
Despite this, there was growth for Match Group, which had an 8% increase compared to last year, revenues reaching $214.3m.
The number of dating subscribers grew 10% to 3.5m.
They also estimated that $500m was a “reasonable and attainable” projection for 2016.
Read their full results here.