Cupid, the internet dating company, has released its half-year results showing Cupid’s revenues doubled to £38.6 million as markets in Canada, France, Spain, Germany and Italy have been growing. Certainly growing numbers of lonely people wanting to find a soul mate increased Cupid’s revenues. Cupid, which is the Edinburgh-based internet dating company, is currently thinking about expanding its businesses in niche markets to include religious themes after observing the increasing popularity of Christian dating sites in America.
Cupid’s financial results
The Edinburg-based internet dating company, which operates websites such as flirt.com and girlsdateforfree.com, reported a 51 percent growth in Cupid’s revenues to £38.6 million in the six months to the end of June compared to the same period previous year. However the Cupid’s report also showed a decrease in pre-tax profits from £3.94 million to £3.65 million due to a 69 percent growth in marketing spending to £23.2 million. Cupid’s revenues are generated by means of subscription. Company’s officials sought to increase its market share in European market and in markets of emerging countries such as India. In addition, the data shows that earnings per share decreased from 3.9p to 3.5p though. However Bill Dobbie, CEO at Cupid, is convinced that even though profits are flat at £5.9 million, the business has a bright future ahead.
Cupid floated on Aim roughly two years ago. Up to date the company has been offering its services on online dating portals such as flirt.com, benaughty.com, datingforparents.com and maturedating.co.uk.
Bill Dobbie, CEO at Cupid, has informed that the company expects roughly £16 million in earnings for the full year. Cupid’s revenues from markets where the internet dating company has been operating for at least two years, such as the UK, Australia, New Zealand and Ireland jumped by 6 percent to £16 million. In addition, Cupid’s revenues from its newer online dating markets, such as Germany and the U.S., grew by 122 percent to £22.2 million.
Accordingly, Cupid, the internet dating company, plans to open a larger U.S. commercial base and, according to company’s officials, it will likely be based in San Francisco. The opening is planned for the next year. The Cupid’s expansion in the U.S. market is a next step of the company which has a 2 percent share of the £800 million online dating market in the United States. A support services office in Dallas, Texas, has been recently opened recently by Cupid.
Niche sites in the online dating market
Bill Dobbie believes that the best way to get Cupid’s expansion on track is to focus more on niche sectors and sites. "I think there will be further growth in established markets by providing new niche sites and new types of dating services,” he stated. Billie Dobbie also has highlighted that a Christian dating site may be a good example how to use a niche sector to expand company’s businesses especially in the U.S online dating market.
The Cupid’s expansion in the U.S online dating market will be aimed at niche sites at older singles, parents and ethnic groups. So the Cupid’s expansion is currently going through another phase since the internet dating company expanded its services from three countries to fifteen in 2010.