Struggling dating provider Spark Networks recently published its financial report for 2015, which shows some positive signs of a subscriber increase, as the company’s revenue continues to fall.
In 2015, Spark took a number of measures in an attempt to refresh its products and reinvigorate its revenue-generating potential.
In the final stages of last year, Spark completed an acquisition of Jewish dating startup JSwipe from owner Smooch Labs for a sum of $7m, and launched revamped versions of its two flagship brands, JDate and ChristianMingle.
It also launched its first new product in years — a Tinder-style mobile dating app called Spark.
And laying out the company’s performance in 2015, its recent financial report shows that regarding users, Spark saw the number of average subscribers increase for the first time in two years, while also generating over 318,000 mobile MAUs by the end of the year.
At the period end of Q4 2015, Spark saw a subscriber increase to 200,023, from 197,832 in the previous quarter.
However, this was still a 7.2% decrease compared to the same period in 2014.
Total average paying subscribers also increased to 199,781 in Q4 from 197,109 in Q3, but this number was still down 12.3% compared to 2014.
And in its report, Spark attributed this decrease in average paying subscribers to its ongoing drop in profits.
Spark Networks Revenue Drop Continues
For the full year of 2015, the company suffered a significant year-on-year revenue loss, taking $48.1m for the year – a 22% drop on its $61.6m revenue total for 2014.
In Q3 of 2015, the company recorded a 22% drop in its year-on-year revenue, taking in a total of $11.7m for the third quarter.
This figure dipped further in Q4, with its total revenue standing at $10.7m and recording a 25% decrease from the comparable period of 2014.
Yet in light of its concerning financial position, Spark’s CEO Michael Egan remains positive about the company’s progress, saying that he is “extremely proud” of its accomplishments over the last year.
He said: “Not only did we finish the year with the launch of the first re-designs of both JDate and ChristianMingle in over 8 years, but more importantly, we successfully executed on all of our core 2015 goals.
“We exited 2015 with an improved portfolio of assets including two new mobile applications, a growing subscriber base, improving unit economics, and a unique and advantaged position in the market.
“As we entered 2015, our focus was on maintaining profitability and returning our subscriber base to growth. We accomplished this.”
In the report, the company also outlined how it plans to ensure a strong 2016, by expanding its Christian services into new markets, growing and monetising its millennial audiences, and retaining a financial advisor to ensure maximum shareholder value is achieved.
Read the full report here.