Match Group's sales had solid growth in the first quarter thanks to an increase in Tinder subscribers. The company, where the portfolio of dating apps also includes Match.com, PlentyOfFish, OkCupid and Hing, among other things, said in its earnings report today that total quarterly revenue grew 14% year over to $ 465 million. If the effect of foreign currency is not included, the growth would have been 18%.
Net earnings attributed to shareholders increased 23% to $ 123 million, or 42 cents per share, from $ 99.7 million or 33 cents over the same period a year ago. Operating revenues increased by 6% to $ 119 million from $ 112 million. During the first quarter of 2019 and 201
In the first quarter, the average Tinder average subscriber was 4.7 million, up from 384,000 in the previous quarter and 1.3 million the year over. In total, Match Group's average subscribers increased 16% to 8.6 million, up from 7.4 million a year ago. Match Group said that Tinder's growth in subscribers and the increase in average per-user income (ARPU) increased revenue, but was partly offset by currency effects. ARPU was flat last year, but without currency effects, it would have increased by 4% to 60 cents.
The company said the adjusted EBITDA (profit before tax, depreciation and amortization) was affected by the higher cost of generating revenue, especially the purchase cost in the app, because revenue is increasingly coming through mobile app stores and higher legal costs, but offset by lower sales and marketing expenses. Adjusted EBITDA grew 13% to $ 155 million from $ 138 million.
Match Group restructured its management team and appointed three new general managers to monitor regions in Asia to bring more users there and focus on international growth. Its first-quarter results highlighted opportunities in India, where Tinder is the highest gross Android app according to App Annie; Japan, where Match Group now owns two of the top five computer programs (Couple is number one in Japan, while Tinder is ranked fourth); and Southeast Asia, where Tinder is now within the 10 largest wholesale apps in six countries.
The company did not break down the results by country, but in the first quarter it had a total of 8,613,000 million average subscribers, with 4,361,000 in North America and 4,252,000 internationally. Total ARPU was 58 cents: 60 cents in North America and 56 cents internationally. Total revenue was $ 464.6 million, of which $ 454 million was direct income, split between $ 237.8 million from North America and $ 216.2 million from international (indirect revenue is revenue that does not come directly from Match Groups end users and most are advertising revenue.