While shows like Indian Matchmaking and Bachelor in Paradise might make you chuckle, there is no denying the reality they are rooted in. Many singles, struggling to find a partner using their own devices, turn to professionals to make their romantic dreams come true. By 2026, the global matchmaking industry is set to be worth $6.6 billion.
One company working in this space is the global dating and matchmaking platform Love Group (ASX: LVE). The Company currently functions in the Hong Kong, Singapore and Bangkok markets, and its FY24 results unveil its expansion plans into new markets.
Love Group’s Q1 FY24 results indicate a quarterly customer cash receipt of $1.2 million, marking a modest 2% increase quarter-on-quarter and a noteworthy 33% year-on-year growth. The quarter concluded with a cash balance of $2.03 million, despite a marginal decrease of $57k quarter-on-quarter. This decrease was attributed to a net operating cash outflow of $69k and a foreign exchange impact of $12k. Advertising and marketing expenditures amounted to $388k and staff costs including salaries and commissions were worth $633k.
Love Group Founder and CEO, Michael Ye, said, “Our business continued to see strong growth in the first quarter of fiscal year 2024, with our customer cash receipts growing by 33% year-on-year to $1,261k. Our strong financial results were underpinned by strong revenue growth in Singapore, where we saw a notable increase in consultation volumes as a result of our new marketing initiatives.
“Looking ahead, we are excited about the upcoming launch of our new online dating app in Hong Kong, as well as expanding our Lovestruck personal matchmaking business into London, one of the largest markets in the world for matchmaking services for singles.”
During the quarter, the Company’s revenue declined in Hong Kong and Bangkok. Its quarterly cash receipts were down 7% in Hong Kong to $832k, driven by lower average order value. In Bangkok, it reported $37k quarterly customer cash receipts, down 5% quarter-on-quarter, driven by lower consultation volume. It reported an upward trajectory in Singapore, accumulating $391k in quarterly customer cash receipts, up 26% on Q4 FY23, driven by higher consultation volume.
At the same time, the Company made payments of $339k to related parties and their associates, of which $79k was for director fees, $259k was for the CEO’s salary clawback and short-term incentive and $1k was for superannuation.
For FY24, the Love Group aims to grow its Lovestruck personal matchmaking business in the existing markets of Hong Kong, Singapore and Bangkok. It also wants to expand Lovestruck into London (allegedly an attractive market full of eligible singles) and launch a new online dating business with an app to target singles seeking serious committed relationships, with an initial launch in Hong Kong.
For its new market expansions, Love Group plans to adopt a capital-efficient and asset-light strategy, utilising scalable online marketing channels, primarily Google and Facebook, coupled with a remote-based sales team to conduct consultations over the phone and video.
Furthermore, Love Group intends to launch a new online dating business through an innovative dating app tailored for singles seeking serious and committed relationships, with an initial rollout planned in Hong Kong.
During Covid, the Love Group suffered a major heartbreak, accumulating losses worth over $500k in FY21. While it stands at a net profit of $200k for FY23, the declining revenues across its main markets paint a lovelorn image.
Alinda is a Business Reporter for The Sentiment
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