Boulogne-Billancourt, 11th May 2010 – Increase in the number of subscribers: success of Meetic Affinity Confirmation of growth and EBITDA margin targets

Boulogne-Billancourt, 28th July 2010

MEETIC (FR0004063097 – MEET), the European leader in online dating, today announces its consolidated half-year results for the six months to 30th June 2010.

Revenue for the first half of 2010 totalled €91.4 million, up +36.3% on the same period of 2009.

Subscription sales (billings excluding deferred revenue) totalled €92.3 million over the half.

Revenue for the second quarter of 2010 totalled €48.0 million, up +35.2% on the same quarter of 2009 and up +10.5% on the first quarter of 2010.

This substantial sequential growth is the result of the major advertising campaigns broadcast over the period, notably towards the end of the first quarter, and the completion of the migration of the Match.com sites onto the Group’s European platform in April 2010.

Subscriber indicators were as follows, over the half:

• Subscriber numbers: a total of 858,008 subscribers at 30th June 2010 versus 829,258 at 31st March 2010, i.e. a net increase of 28,750 subscribers. Both Dating and Matchmaking recorded an increase in subscriber numbers.
• ARPU (Average Revenue Per User): reflecting the increased share of Matchmaking revenue in total Group revenue, average revenue per user improved to 18.70 euros over the first half of 2010 from 18.10 euros over the second half of 2009.
• Churn (rate of monthly subscription cancellations): the figure was 13.3%, versus 13.0% the second half of 2009.

Pro forma information

Pro forma revenue, i.e. treating Match.com’s European activity as if it were integrated on 1st January 2009, totalled €91.7 million for the first half of 2009 and €45.7 million for the second quarter 2009. Group revenue for the second quarter of 2010, totalling €48 million, was thus up 5% compared to the pro forma revenue for the second quarter of 2009.

Sharp increase in profitability over the second quarter

As announced, Meetic continued to pursue a substantial marketing investment strategy over the second quarter, with such investments totalling €25 million. Marketing investments over the first half thus totalled €55.7 million, or 61% of revenue (compared to 54% over the first half of 2009).

Over the first half of 2010, the client acquisition cost was 72.10 euros, versus 63.40 euros over the same period of 2009.

Reflecting the increase in the value of the Group’s offering and the substantial synergies resulting from the integration of Match.com’s European activities, the EBITDA margin (before the cost of free shares) came to 19.2% in the second quarter, taking the Group’s profitability to 10.1% for the first half as a whole.

First integration of the results of Match.com Global Investments, the Joint Venture created for the development of Match and Meetic in Latin America

Given the time necessary to close the Joint Venture’s accounts, the Group’s share in the income of the Joint Venture will be taken into account in the Meetic group’s consolidated accounts with a one-quarter lag, based on the most recent available financial statements of the Joint Venture.

The share of profit for the period running from 10th March to 31st March 2010 was thus €139k.

Net profit

Taking into account depreciations of €2.2 million and tax of €3.2 million, net profit from maintained activities totalled €1.9 million and the Group’s total net profit was €4.2 million, including €2.3 million from divested activities.

Sound financial structure

At 30th June 2010, and after the payment of a total dividend of €34.2 million on 14th June 2010, the Group had a net cash surplus of €21.8 million. Operating cash flow totalled €8.5 million over the first half of 2010.

Outlook: confirmation of annual growth and EBITDA margin targets for 2010