Match Group shares fall as profits plunge and revenue per user drops

Caitlin Morrison
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Match boss Greg Blatt (Source: Getty)

Shares in Tinder parent company Match Group have fallen 7.3 per cent in after hours trading, as the firm reported a 26 per cent drop in profit during the final quarter of 2015, from $48.3m (£33.5m) to $35.6m.

Total revenue rose by 12 per cent, from $239m in the fourth quarter of 2014 to $267.6m.

The New York-based firm, which also owns and OkCupid, also posted a 14 per cent rise in total dating revenue, up to $241.5m from $212.5m.

However, average revenue per paid user fell to 53 cents in the fourth quarter, from 62 cents a year earlier.

Greg Blatt, chairman and chief exec of Match Group, said the firm had had a “seminal fourth quarter”, which included floating in November, the acquisition of PlentyOfFish, and “the realignment of our management structure to better reflect our increasing global scale”.

"At the same time, we delivered solid revenue and profit growth and we head into 2016 with increasing momentum, which we expect will continue to build throughout the year,” he added.

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