In an age when dating apps are free to download and users swipe-right uninhibited, it is a credit to Hong-Kong based matchmaker Love Group (ASX: LVE) to have still billed out $1.7m in customer receipts for H1 of FY20.
Despite the billings, Love Group has reported a cash operating loss of $228k with political protests impacting the usage of their matchmaking apps, and stalling general business around Hong Kong through 2019.
Unfortunately for the matchmaker things have only gotten worse, with the Company reporting to Hong Kong Police that they identified a data breach whereby a hacker gained access to their servers and subsequently, the personal information of their customers.
Affected clients of Love Group were notified individually of the breach which was also referred to the Office of the Privacy Commissioner for Personal Data in Hong Kong, as well as data authorities in Singapore and Hong Kong.
The attack however is far from the first time hackers have targeted matchmaking services with Ashley Maddison having been attacked in 2015 by a group which then leaked real names and home addresses of individuals whom had joined the service for the purpose of cheating on their spouse.
Despite the cash receipts and healthy $1.4m bank balance, Love Group is likely to see some turbulent quarterly reports in the immediate future as a direct result of the coronavirus outbreak which is present in the Company’s key markets – Hong Kong, China, Singapore and Thailand.
Identifying changing trends in the matchmaking market, Love Group offers a range of services from casual dating apps to websites for those seeing long-term committed relationships whilst still running traditional ‘Singles Events’ in select cities around the world.
Attempting to steer their way through this difficult period in Hong Kong, Love Group has cancelled their on-market share purchase buy back and reported the resignation of Wendy Hui as Chief Financial Office in December 2019. This came just months after the Company reported their first profitable year which delivered $6.3 million in revenues for FY19 and $543k profit on the financial year.
Love Group (previously Datetix Group) operates their premium brand Lovestruck and dating app Noonswoon.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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