Boulogne-Billancourt, 1st February 2012
MEETIC (MEET – FR0004063097), the European leader in online dating, today announces its consolidated and audited results for the financial year to 31st December 2011, approved by the Board meeting1 of 26th January 2012.
Revenue for the 4th quarter of 2011 totalled €42.1 million. It reflects both the impact of the increase in competitive pressure and the Group’s decision to continue optimising its marketing expenditure, within a context where advertising costs are traditionally higher in the 4th quarter.
Completion of the Match.com takeover offer on Meetic:
IAC/InterActiveCorp has become Meetic’s majority shareholder, with an 81% stake in the Group. On 22nd June 2011, Match.com Europe Limited tabled a tender offer with the AMF for the acquisition of all Meetic shares at a price of €15 per share. Following this offer, which ended on 1st September 2011, IAC/InterActiveCorp, the indirect parent company of Match.com Pegasus Ltd and Match.com Europe Ltd, indirectly holds 81% of Meetic’s capital and at least 79% of Meetic’s voting rights.
Payment of an interim dividend of €0.87 per share
At its meeting of 12th December 2011, Meetic’s Board of Directors decided to pay an interim dividend of €0.87 per share with regards to the 2011 financial year. This interim dividend was paid on 19th December 2011.
EBITDA margin (after the cost of free shares): 20.3%
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), after the cost of free shares, totalled €36.2 million, giving an EBITDA margin of 20.3%, within the guidance bracket reaffirmed throughout the year.
Marketing expenditure totalled €11.8 million over the 4th quarter of 2011, taking annual marketing expenditure to €92.5 million, or roughly 52% of revenue, compared to €94.8 million and 51% of revenue in 2010.
Depreciation of investments and receivables on investments in associates
The Group’s share of net income from associates increased from €1 million for six months of activity in 2010 to €1.9 million for 12 months of activity in 2011.
The Group observed an indication of an impairment loss for its Latin American activities, and therefore implemented an impairment test on the shares of Match.com Global Investments SARL, thus writing down a total for depreciation of investments and related receivables of €10.6 million.
The Group’s net profit, impacted by this depreciation, thus totalled €8.9 million at 31st December 2011 versus €24.2 million in 2010.
At 31st December 2011, and following the payment of a dividend totalling €20 million on 19th December 2011, the Group had a cash surplus of €33.1 million. Operating cash flow totalled €22.5 million over 2011.
In 2012, the Group will therefore continue to execute its strategy by intensifying operational, technical and marketing synergies between match.com and Meetic. In particular, the Group would look to benefit from match.com’s knowhow to optimise its products and improve site usage, in order to improve monetisation rates on the Group’s online services.
By implementing these synergies, match.com and Meetic are ideally positioned to seize on growth opportunities and to continue providing their clients with the level of innovation and service that underpin the two companies’ reputations.
1 Note 1: Audit procedures have been carried out on consolidated accounts. The audit report will be issued once the necessary procedures for verifying footnotes to the consolidated financial statements and management report have been completed.