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Spark Networks Reports Q1 Results

Filed in archive Dating Sites by Mark Brooks on May 03, 2006

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SPARK NETWORKS NEWSROOM -- Apr 27 -- JDate revenue and average paying subscribers increased 8% and 13%. During Q1, Spark redesigned and rebranded its Christian community (Christianmingle.com) as Relationships.com, already the most-visited Christian community. Revenue for Q1 2006 was $16.8 million, up 2% on Q1 2005. Spark has reduced spending for AmericanSingles in order to lower customer acquisition costs. Net income was $710,000. EBITDAS profit of $3.4 million, the best to date, up 10%. Direct subscriber acquisition costs for JDate was $13.20, up 47%, and $35.19 for AmericanSingles, up 37%. RELEASE @ SPARK NETWORKS

Mark Brooks: One can argue that niche dating sites could be quashed by the big dating sites improving their search capability (e.g. reverse search). However, that argument doesn't take into account the power of a niche dating brand; the attraction of a focused site geared towards a particular demographic, interest, fetish, etc. E.g. Jdate (Jewish), Webdate (first date on a webcam), ChristianCafe (Christianslinks), DateMyPet (Pet Lovers), Sexsearch (Sex Lovers?). All are powerful brands, worlds apart. Specific interest dating sites will endure and enjoy especially good word-of-mouth marketing efficiencies, if they do a good job. Spark (American Singles) has recognised, 'if you can beat 'em, might as well join 'em,' and is shifting it's attention to it's niche dating sites.



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