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Tinder-owner Match up 4% on earnings

ICE Graveyard 26/07/2016 Katie Roof

Match Group reported second quarter earnings after the bell on Tuesday. The owner of datings sites including Tinder, OkCupid and reported $301 million in revenue, above analyst expectations of $297 million. Adjusted earnings per share was 17 cents, above estimates of 15 cents.  Shares were up about 4% in after-hours trading.

“Q2 showed solid performance, with 23% Dating revenue growth, operating income of $74 million and total Adjusted EBITDA of over $100 million,” commented Match GroupChairman and CEO Greg Blatt, in a statement. “We continue to execute against our plan, with exceptional growth at Tinder and solid performance by Meetic, Match and PlentyOfFish.”

Investors were particularly watching PMC, the paid customer category which grew by 30% to 5.3 million.

The company is trying to offset the decline in traditional paid dating sites, by growing its Tinder subscription business. Tinder has a freemium model, where users can opt to pay for additional features.

But “it’s going to be harder in the long run to be able to sell the amount of paid memberships for Tinder that makes up for all of the loss from other brands,” warned Brandon Ross, analyst at BTIG.

There’s also a lot of competition for Tinder, particularly from Bumble, which was founded by Whitney Wolfe, a former member of the Tinder team. “Bumble will get scale throughout the rest of the country and the rest of the world eventually,” said Ross. Others in the mobile dating app space include Happn, Hinge, Coffee Meets Bagel and The League.

At Tuesday’s close of $16.64, shares were up 38.7% since the company separated from IAC last November. 

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