LOV - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to Spark Networks' Half Year 2018 Earnings Conference Call. At this time, all participants will be in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the conference over to your host, Robert O'Hare, Chief Financial Officer. ahead. go Please

Rob O'Hare

joining Officer for with I’m O'Hare, Officer. Rob is Thank Spark us Networks Financial Executive Chief for Folgueira, call SE. Chief Jeronimo you Spark's today. On me today's

are we Today, half the you. a XXXX a Before results. issued there few I is cover we our need announcing release Investor It items press financial with to first within begin, available refer company's release from our of filings. website adjusted we and this our section In SEC press at is Relations the which remarks in prepared call, our defined to EBITDA, www.spark.net. in

is financial useful Company's Although a adjusted may evaluating financial it current we be EBITDA investors the when non-IFRS measure, believe performance. to

accordance not from on listening the that or I net would other everyone earnings consolidated However, comparable consider measures any determining and materially included alternative similarly release. or or of that to contain remind differ EBITDA for is titled comments net future calculated could statements our like EBITDA calculated forward-looking may such results you operations predictions of in any adjusted events the EBITDA investors statements IFRS, reconciliation Company's statements an this risks results made that information in be regarding operating not call operations found it subject today projections events. to to in accordance uncertainties to caution that cause We can are be or in are fact A or as because other projections. actual adjusted adjusted Further, by not with IFRS. performance may employed measure with income, companies. should to in income to from cash flow our

Company's from results with actual the the factors uncertainties risks, differ may statements SEC. found be materially forward-looking that and Additional in events these filings cause or could to

the of our prepared the session. the be website will call section our playback Investor that, weeks. being call available turn With on for over I question-and-answer will a I next This to two Jeronimo conduct recorded Relations remarks, and Jeronimo. now Following is and for will

Jeronimo Folgueira

and thanks today. the call Rob, Thanks, joining everyone for

will a last first half first for discussion earnings provide We of April. have had preliminary the half the an the for call half growth second well. financial our our a and year Rob portion call expectations in results use and turn I back productive in plans update I on call XXXX our working like priorities of would very on to our our to on and of to growth are XXXX. outlined an of we key XXXX the our the view update then first

discussed for As building as ago, long-term months base revenue for growth. XXXX and year we foundational we a profitable view sustainable strong a a few

We are continuing our to in areas. growth three discrete strategy focus

EliteSingles, growth our for to The first brand. continuing is drive largest

portfolio From industry. US$X more category. than with America, this very are investing billion a to these product marketing November. the Secondly, last Spark and we JSwipe primarily results that and we dating optimization and geographic JDate, grow following investments global last we and of North the of excited with within and portfolio focusing far not required were online December and for accounts are the are the Christian least, of which brand Networks brands long-term the but to are so SilverSingles the potential half our new to grow added merger the Last Inc. stabilize making we perspective, the launch close our ultimately initiatives by Mingle of

for accounted of EliteSingles our brand, first the in total largest nearly XX% revenues half XXXX. Our of

first excess company constant half has On was America Elite in XX% for the currency year-over-year. America a priority the last of North X% versus brands For by Euro revenue XXXX, offset Elite’s in US America expanding strengthened been growth a half in North as and a basis, no headwind the years, grew year-over-year the the Elite resulting basis. top This three significantly growth XXXX North first on of Dollar FX in was the of different. reported a XX%

are Elite’s see to the While drive grow. continued brand our pleased subscriber about more are revenue we even continues we North Elite's ability North in of American growth recognition to acceleration in an excited to as America, KPIs

portfolio and focus and for Spark we Inc. merger with JDate, the that of Mingle to these close the brands added pleased JSwipe Our confident following to made is we area that the with Christian improvements. continue am make further stabilization merger Networks the to of the I our second through were brands improvements have XXXX the can

the in ARPU, brands. implemented in first us first these and conversion of XXXX XXXX. with Inc. Our period positive since helped of the drive stable confident initial Further, revenue we monthly Spark will brands, work seen have ARPU combination product, ARPU, and brands revenue improvement of Per allow increase User, quarter over into on the These the X% Average the quarter of for be and that growth the other we merger revenue year-over-year remain half local since improvements fourth first of have increasing in XXXX for Revenue This throughout by we monetization the closed. the improvements the these will grow has currency to marketing or focused in XXXX.

as As the launched we last subscribers happier over XX,XXX today the with had paying the the of the in XX. month needs in reported about half exited new we strong generated result €X and performance was SilverSingles since of results million SilverSingles period. roughly contributed investment X% our America. resulting direct launch. month marketing this revenue of XXXX, a the spoke in We age of be and year, of in revenue €X brand. total to continues in the significant couldn’t in first we of SilverSingles underserved and net Two-thirds the each We of SilverSingles KPIs this the our grow we mid-December first XXXX of to million over initial for strong is SilverSingles North singles previously the call, in loss the half has discussed of marketing demonstrated financials June. This the invested nearly SilverSingles' in meet

revenue this. close to Given will break-even financials but the cash moment, potential at year, our we the in be SilverSingles strong the and America. very profitability our provide optimistic the the the EBITDA detailed the and us SilverSingles, With second continuing about half now particularly look of long-term an that in in basis flow first behind half a brand Rob North XXXX of perform, period break-even more will are we brand throughout Adjusted in of a with growth XXXX. I on confident biggest will investment are of and

see encouraging it's are is there of While left a growth initiatives to results do our at confirm that work working. lot Spark, to

We are and beyond excited the XXXX confident With the grow we seen with the are to very at we now rates and by turn profitability. we Rob. can to continue business call far over in healthy results that, have I’ll that XXXX so into increasing and

Rob O'Hare

XXXX Thanks, Jeronimo. on to color I half am going share results. additional our some first

months XX.X% six total revenue, the a the XXXX period six with Networks the and and six XXXX marketing year-over-year of in six of XXXX results Merger. our will the revenue Spark addition The efforts with write-off December / €X.X liabilities half months America June comparability in and and first Mingle million affect by Revenue we net ended our pre-merger XXXX June impact to XXXX. contracts a JSwipe driven from the of the relating include includes increase finished Starting subscribers full resulting a XX, was As months an first were in increase €XXX,XXX XX, sequential following Inc. XXXX. Spark of November periods. from of of Christian €XX to of to months and first Spark, North in Affinitas-Spark from reporting ended reminder, post-merger increases XX.X%, Affinitas ended XX, merger million the the of growth of the average the revenue, paying of compared JDate, half

six €XX.X a June statement, six the of and ended XX, XX, contribution increase ended XX.X%, was XXXX, December compared an ended June million months six income XX.X% months the XXXX. for the XXXX the XX, months down from to Moving increase

a increased increased six XX, margin from ended XX, margin primarily months The driven the ended North ended XX.X% months Affinitas June America June the June by Our XX, XX.X% of was months to of expansion to North million the the / liabilities write-off of growth to in revenue Merger. contribution contract margin ended in €X.X decreased XXXX. year-over-year €XXX,XXX and months from the contribution XX.X% in from six six Spark XXXX net XXXX. XX.X% XX, America. December Spark, XX.X% from six includes post-merger contribution relating XXXX Contribution in in

of of XX, increase EBITDA the half non-recurring XXXX adjusted XXXX, €X.X For the XX, six €X.X a months an and XXXX. versus six June months million excluding was December ended first charges decrease from million, the of ended €XX,XXX

credit term the balance €XX the from via XXXX, capital in with raised our an million sheet, at debt half €XX June the €X.X undrawn uncommitted additional an million facility Group loan of million XXXX Today XXXX. to the committed XXXX. XX, March cash facility. of revolving had cash of stemming the in we an we €X.X €XX compared million equivalents, via million million €XX end have and Turning mid-year to and outstanding ended Spark of On first acquisition incremental

Euro. exchange is have our decision guidance, point a provide we XXXX. In US Euro-denominated ranges would our rates million XXXX of our at Euros rates expectations $XXX earnings been: million These Now important in and EBITDA revenue to X% After respectively. assumed Euro have per is current exchange lower revenue With April earnings set Euro we provided EBITDA investors exchange in Euro for and for it reflect the the Dollar guidance now $X.XX last let's given adjusted think April, time €XXX and Dollar-denominated the million speaking ranges $XXX guidance to our €XXX with we implied to XXXX reporting and to or approximately when last of review million of the adjusted following late these call, US public The $XX forward ranges XXXX rate from at $X.XX than to to of currency. per million this €XX.X made of the of number into $XX million. we expectations. €XX.X our lower call million, therefore announcement million to

growth Jeronimo opportunities deploy continue mentioned, to returns. we to with attractive As capital see

near-term On full to will As full near expect and be the a Euro XXXX year adjusted our we growth we basis, to be revenue XXXX the of now low-end. revenue year near long-term previously a ahead of to result, range prioritize EBITDA continue guided scaling profitability. high-end

XXXX the €X.X to EBITDA €X.X We adjusted second revenue and million €XX.X between to in million. be to half of to million be expect between €XX.X million

the at In EBITDA EBITDA X% of half and €XX.X when of combined revenue revenue points comparison EBITDA and mid-point ranges in well as second €X.X pro continued The XXXX €XX to that of compared our the of as sequential million, implied of the half of guided XXXX of ranges margin see percentage strong profitability XXXX million second first adjusted growth, adjusted our and adjusted respectively. five the year-over-year year. expansion, range growth forma these €X.X nearly we million, the half and seasonal typically revenue to half revenue assume million latter of

€X.X €XXX.X to €XX.X ranges EBITDA implies XXXX, million million. revenue to of adjusted to the XXXX and second year XXXX million of full half full Turning €XXX.X year million

our we the also our us, believe grow. we front as we want that profitability given in towards bias growth should opportunity While scale of maintain to set we

these to to should margin XXXX, expect and growth be growth one into we rate rate saying that adjusted we we remarks. half into to prepared percentage growth to EBITDA increase and our in to deliver in to our versus positive revenue look year. revenue XXXX to XXXX growth next complete, second drive since three in optimizations to we improvements the year bear high-single-digits. the see this continuing XXXX fully growth continue in made fruit. and currently have a merger by start expect excited concludes our mid XXXX point operating revenue more trends XXXX. than that leverage I’ll half are We profitability That currently with both wrap percentage This XXXX. to the expect investments start up we results As ahead With

now line Operator? We will questions. up open the to

Rob O'Hare

earnings and connecting forward everyone for our in with sure. look Thanks next you we on Yes, to again call. Thanks. listening

Operator

today's This conclude teleconference. will

You time. disconnect at your you participation. may this Thank lines your for

Spark Networks SE (LOVLY) 30 Aug 182018 Q2 Earnings call transcript