www.cupidplc.com
Cupid is an online global dating player steaming ahead, says Edison
Cupid (LON:CUP) is an on-line dating firm literally "steaming ahead" as it grows both its business in the UK and abroad, according to research boutique Edison.
In a note today, analyst Fiona Orford-Williams said the company's interim results had been ahead of expectations and Edison had increased its forecasts for the current 2011 year.
The firm, which listed on AIM in June and operates four brands: www.cupid.com, www.benaughty.com, www.flirt.com and www.girlsdateforfree.com, is now becoming a global player, she said.
It continues to invest heavily in marketing as well as corporate deals, highlights Edison. The company has more than 23 million members in 39 countries.
"Cupid’s management could have settled for building a key UK business. However, from the outset it has made clear its intentions to become one of the leading global players in the dating sector. A published goal of exceeding 50 percent of revenues ex-UK for FY11 has been achieved well ahead of schedule; 53 percent of revenues were derived overseas in H111," the analyst notes.
She added how Cupid plans to create a business with over £200 million of subscription revenues within five years, aiming for market shares of up to 15 percent in each region.
Since its listing in May, the firm has made a number of acquisitions at sensible prices and expanded organically into new territories, she said.
The company operates with a large network of marketing affiliates, helping drive traffic to the sites and is able to cross-sell across the properties, notes Edison, which added that the business model is inherently cash generative, despite a heavy requirement for direct marketing cost, facilitating investment in acquisitions to broaden out the geographies.
