Cupid off target as revenue growth slows

The owner of Cupid.com and BeNaughty.com said revenues from established markets, such as the UK, Ireland and Australia, increased 6 per cent in the six months to June 30 to £16m, compared to 38 per cent in the year to December 31.

While revenues from new markets, such as the US, France, Italy and Spain, increased 122 per cent to £22.2m, pre-tax profits still fell 5 per cent to £3.7m, triggering a 1 per cent drop in Cupid’s share price.

However, the Edinburgh-based firm said it was confident it will continue to deliver value to shareholders as it pushes further into the US and other overseas markets.

Cupid chief executive Bill Dobbie said: “We remain in a very strong position and are confident that we will continue to deliver value for shareholders in 2012 and beyond.

“The market for our services is global and growing and we are well positioned to take advantage of the numerous opportunities that exist.”

The group averaged 540,000 monthly subscribers in the first half, which compared to 410,000 in the same period last year.

The group said that within its established markets the UK continues to grow in line with expectations and added that its recent TV advertising campaign, featuring actors playing Adam and Eve was positive.

Cupid said it intends to increase advertising activity in the first quarter of next year.

The company, which also runs “niche dating” sites such as services for over-fifties and single parents, said it now delivers 30 per cent of its users through its mobile channels, such as iPad and mobile phone apps.