Match Group revenue grew solidly in the first quarter thanks to an increase in subscribers to Tinder. The company, whose portfolio of dating apps includes Match.com, PlentyOfFish, OkCupid and Hinge among others, said in its earnings report that quarterly revenue increased 14% year-on-year to $ 465 million. If exchange rate effects are not taken into account, growth would have been 18%.
Net income attributable to shareholders increased 23% to $ 123 million, or $ 42 per share, from $ 99.7 million, or $ 33, a year earlier. Operating income increased 6% from $ 112 million to $ 119 million. During the first quarter of 2019 and 2018, Match Group recognized income tax expense of $ 28 million, or $ 1
In the first quarter, Tinder's average subscribers reached 4.7 million, compared with 384,000 in the previous quarter and 1.3 million year on year. Overall, the average number of subscribers to the Match Group increased by 16% to 8.6 million compared to 7.4 million in the previous year. The Match Group said subscriber growth and the increase in average revenue per user (ARPU) at Tinder increased revenue, but were partially offset by foreign exchange effects. The ARPU was unchanged year on year, but without currency effects it would have risen 4% to 60 cents.
The Company said growth in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) would be impacted The higher revenue generation costs, especially in-app purchase fees, as revenues are increasing through mobile apps Stores and higher legal costs, but offset by lower sales and marketing costs. Adjusted EBITDA increased 13 percent from $ 138 million to $ 155 million.
In the first quarter, the Match Group restructured its leadership team and appointed three new General Managers to oversee regions in Asia to attract more users and focus on international growth. The first-quarter earnings presentation highlighted India's potential, where Tinder is the highest-rated Android app, according to App Annie. Japan, where Match Group now owns two of the five most successful dating apps (Pairs is number one in Japan, while Tinder is in fourth place); and Southeast Asia, where Tinder is one of the top 10 apps in six countries.
The company did not build revenue by country, but had a total of 8,613,000 million average subscribers (4,361,000) North America and 4,252,000 international in the first quarter. The ARPU totaled 58 cents: 60 cents in North America and 56 cents abroad. Total revenue was $ 464.6 million. Of this, $ 454 million was direct income, which was between $ 237.8 million from North America and $ 216.2 million from international business (indirect revenue is revenue not directly from the end users of the Match The majority of this is advertising revenue.