A longform article on Seeking Alpha has analysed the dominance of Match Group in the dating sector.
The article begins with a detailed description of Match Group, noting that it holds a portfolio of 45 brands and is mostly owned by IAC.
The ‘Investment Thesis’ breaks down the various contributions to Match Group’s total revenue. “Recurring membership fees” are said to be the most important income stream, followed by “a la carte features” like Tinder’s ‘Boost’.
Online advertising and non-dating revenue were among the other sources of revenue for Match Group.
One section details the ‘Notable Drivers’ of Match Group’s growth. The organisation’s ‘aggressive acquisitions’ are said to be a significant forward driver.
Match Group has completed more than 25 acquisitions in the last eight years, taking over companies such as PlentyOfFish and OKCupid.
The article goes on to outline a number of risks that the Group faces. One is competition – the dating niche has a “number of new entrants on a yearly basis with disruptive and innovative business models”.
The shareholding structure limiting decision making, a reliance on highly skilled individuals and the risks of internationalisation may also be threats to Match Group in the future.
The report concludes positively, stating that: “The Match Group is performing extremely well in a disruptive and highly competitive environment.”
Read more here.