Shares in Cupid Plc (LON:CUP) soared after the online dating firm revealed that its current trading is beyond the market’s expectations.
The group is now generating more than £4 million in revenue each month. Crucially the business continues to grow as the online dating industry becomes increasing acceptable and credible, the company said.
Indeed the industry’s credibility was demonstrated earlier this year when the UK’s office of national statistic’s included online dating fees into the ‘basket’ of goods that is used to calculate inflation – Consumer Price Index (CPI).
Enamoured investors couldn’t keep their hands off the buy button. On AIM, the shares advanced 33.5 pence each, about 26 percent, to trade at 162 pence - the highest level to date.
The company initially listed on AIM last summer under its previous name easydate – it was renamed in January 2011 – since then it has made a number of acquisitions and it keeps expanding.
"We are very pleased with this continuing strong performance. Our growing revenues are a reflection of our continued geographical growth and increased uptake of our mobile applications," said chief executive Bill Dobbie.
"Underlying this is the increasing global acceptance and credibility of the online dating industry which is leading to further demand for the services we offer. We are very pleased to upgrade our forecasts for 2011, 2012 and 2013 and look forward to this growth continuing."
The company highlighted that over 50 percent of monthly revenues now come from outside, specifically it said that its business is performing exceptionally well outside in North America. In India it said that both usage level and subscription uptake is beating expectations.
It has also bought internet domains to focus on the French market and it intends to focus on targeted mergers and acquisitions in European markets.
Overall Cupid said that it has a high degree of confidence in its current performance as well as the potential for future growth opportunities, which will go beyond the levels previously forecast.
“Cupid continues to exceed its own and the market’s expectations,” said Paul Morland at City firm Peel Hunt. “After three upgrades to 2010 forecasts, we now have material upgrades for 2011.
“The key to this success continues to be a class leading software platform, combined with highly effective on line advertising in a growth market.”
Cupid’s user base currently exceeds 23 million members, in 39 countries.