Spark Networks(R) Reports Fourth Quarter Revenue Growth of 27% behind 114% Increase in Other Affinity Networks Revenue

BEVERLY HILLS, CA, Mar 01, 2012 (MARKETWIRE via COMTEX) — Spark Networks, Inc. LOV -2.86% , a leading provider of online personals services, today reported financial results for the fourth quarter and full year ended December 31, 2011.

 

Q4 2011 Full Year 2011

—————- —————-

Revenue $ 12.9 Million $ 48.5 Million

Contribution Margin 41% 47%

Net Loss $ 1.1 Million $ 1.6 Million

Net Loss Per Share $ 0.05 $ 0.08

 

 

 

 

“2011 was a year of many ‘firsts’ for us. Most notably, we objectively demonstrated Spark is more than just Jewish Networks with our Other Affinity Networks subscriber base cresting 100,000 and surpassing that of our Jewish Networks segment,” said Greg Liberman, Spark’s President and Chief Executive Officer. “The 78% increase in Other Affinity Networks revenue drove company-wide revenue up 19% for the year, the first time since 2006 we have grown annual revenue. And, that revenue growth was driven by an increase in subscribers, with company-wide average paying subscribers(1) up 21% for the year behind a 60% increase in Other Affinity Networks average paying subscribers.”

 

“Not only am I pleased to report our full year results, but also another solid quarter, as company-wide revenue and average paying subscribers grew 27% and 32%, respectively, powered by Other Affinity Networks’ 114% increase in revenue and 89% increase in average paying subscribers when compared to Q4 2010.”

 

Financial Results Revenue for the fourth quarter of 2011 was $12.9 million, an increase of 27% compared to $10.1 million for the fourth quarter of 2010, and an increase of 1% compared to $12.7 million in the prior quarter. Full year 2011 revenue was $48.5 million, a 19% increase compared to $40.9 million for full year 2010.

 

Contribution(2) for the fourth quarter of 2011 was $5.2 million, a decrease of 24% compared to $6.9 million for the fourth quarter of 2010, and a 15% decrease compared to $6.2 million in the prior quarter. Full year 2011 contribution was $22.8 million, a 24% decrease compared to $30.1 million for full year 2010.

 

Total cost and expenses for the fourth quarter of 2011 were $13.5 million, a 51% increase compared to $9.0 million in the fourth quarter of 2010, and a 7% increase compared to $12.7 million in the prior quarter. Full year total cost and expenses were $49.6 million, a 43% increase compared to $34.6 million for full year 2010.

 

Net loss for the fourth quarter of 2011 was $1.1 million, or $0.05 per share, compared to net income of $626,000 or $0.03 per share, for the fourth quarter of 2010 and a net loss of $238,000 or $0.01 per share for the prior quarter. Full year 2011 net loss was $1.6 million, or $0.08 per share, compared to net income of $3.7 million or $0.18 per share for full year 2010.

 

Adjusted EBITDA(3) for the fourth quarter of 2011 was $1.0 million, a decrease of 47% compared to $2.0 million for the fourth quarter of 2010, and an increase of 61% compared to $639,000 in the prior quarter. A 173% increase in Other Affinity Networks direct marketing expense accounted for a substantial portion of the decrease in year-over-year Adjusted EBITDA results. Full year 2011 Adjusted EBITDA was $2.6 million, a 72% decrease compared to $9.4 million for full year 2010.

 

Average paying subscribers for the Company, as a whole, in the fourth quarter of 2011 were 212,850, an increase of 32% compared to 160,744 for the fourth quarter of 2010 and a 3% increase compared to 206,099 for the prior quarter. Full year 2011 average paying subscribers were 196,850, a 21% increase compared to 162,311 for full year 2010.

 

Segment Reporting(4)

 

Fourth quarter 2011 revenue for Jewish Networks was $6.7 million, a decrease of 3% compared to $6.9 million in the fourth quarter of 2010 and flat compared to the prior quarter. Full year 2011 Jewish Networks revenue was $27.1 million, a decrease of 1% compared to $27.4 million for full year 2010.

 

Fourth quarter 2011 revenue for Other Affinity Networks was $5.9 million, an increase of 114% compared to $2.8 million in fourth quarter 2010, and an increase of 4% compared to $5.7 million in the prior quarter. Full year 2011 Other Affinity Networks revenue was $20.1 million, a 78% increase compared to $11.3 million for full year 2010.

 

Fourth quarter 2011 revenue for General Market Networks was $107,000, a decrease of 55% compared to $236,000 in fourth quarter 2010, and a 16% decrease compared to $127,000 in the prior quarter. Full year 2011 General Market Networks revenue was $578,000, a 51% decrease compared to $1.2 million for full year 2010.

 

Fourth quarter 2011 revenue for Offline & Other Businesses was $105,000, a decrease of 34% compared to $160,000 in fourth quarter 2010, and a 5% decrease compared to $111,000 in the prior quarter. Full year 2011 Offline & Other Businesses revenue was $772,000, a 20% decrease compared to $964,000 for full year 2010.

 

Average paying subscribers for Jewish Networks were 87,101 during the fourth quarter of 2011, a decrease of 3% compared to 89,723 in the fourth quarter of 2010, and a decrease of 2% compared to 88,976 in the prior quarter. Full year 2011 Jewish Networks average paying subscribers were 89,429, a decrease of 1% compared to 90,452 for full year 2010.

 

Average paying subscribers for Other Affinity Networks were 123,139 during the fourth quarter of 2011, an increase of 89% compared to 65,172 in the fourth quarter of 2010 and an increase of 8% compared to 113,972 in the prior quarter. Full year Other Affinity Networks average paying subscribers were 103,768, an increase of 60% compared to 64,851 for full year 2010.

 

Average paying subscribers for General Market Networks were 2,158 during the fourth quarter of 2011, a decrease of 58% compared to 5,174 in the fourth quarter of 2010, and a decrease of 20% compared to 2,702 in the prior quarter. Full year 2011 General Market Networks average paying subscribers were 3,138, a decrease of 50% compared to 6,328 for full year 2010.

 

Balance Sheet, Cash, Debt

 

As of December 31, 2011, the Company had cash and cash equivalents of $15.1 million, an increase of 8.7% compared to $13.9 million at December 31, 2010. As of December 31, 2011, the Company had no outstanding debt.

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