There has been speculation that Match Group’s star performer in the online dating space – dating app Tinder – would cannibalize its other online dating companies.
But so far, contrary to analysts’ reports, this hasn’t happened.
What they found instead was that Match Group’s overall earnings were up in the first quarter of 2016, thanks in part to the POF acquisition and Match Group’s strategy to grow and invest in Tinder’s rivals.
Overall revenue came in at 5 million in its first quarter, million over expected revenues.
Numerous dating apps are launching every week, hoping to cash in on Tinder’s market share and success.
It seems to be a win-win for the online dating industry as a whole, even in a saturated market.
Greg Blatt, chairman and CEO of Match Group, said in the first quarter earnings release: "Match Group posted very strong revenue and Adjusted EBITDA growth in the first quarter, driven by exceptional growth at Tinder, solid performance of Meetic and Match, and the Plenty Of Fish acquisition." Bank of America Merrill Lynch explained that "even without Tinder, Match would have grown its core Dating subscribers by 6% (up from about 1% last quarter) and its Dating revenue by significantly more." The POF acquisition is an important factor in the revenue numbers.
(Tinder’s revenue comes mainly from paid advertising, rather than its tiered service.) For the most part, online daters are not beholden to one site or app, preferring to join two or more at any given time.Because of Tinder’s growth, it has grown the entire online dating industry in just three short years, and made online dating a more acceptable practice.