In a digital age dominated by the likes of Tinder, Bumble, Grindr and other casual dating apps, a growing number of individuals are returning to traditional matchmaking services in search of meaningful connections. This trend is reflected in the recent financial performance of Love Group (ASX: LVE), a leading provider of personal matchmaking services, which has reported its third consecutive quarter of positive cash flow.
Primarily operating in Hong Kong and Singapore, Love Group offers dating services via its dating apps which are marketed towards individuals seeking long-term relationships. Such services are offered through its Lovestruck and Noonswoon apps, while they also still operate their traditional dating services where they host events attended by select singles.
While these services struggled during Covid when dating during the pandemic was near-impossible due to movement restrictions, Love Group continues to emerge from the pandemic in good shape through their third consecutive quarter of positive operating cash flow.
For the quarter ended 30 June 2024, Love Group reported cash receipts of $1.1 million with $168k of positive operating cash flow.
This took their 12-months YTD cash receipts to $4.8 million which is a 16% increase on the previous year, and $458k in operating cash flow.
Love Group’s consistent financial performance is largely attributed to its strategic focus in Hong Kong, a major hub for the Company’s operations, which recorded quarterly customer cash receipts of $677k. Although this represents a 2% decline from the previous quarter, the city remains a strong market for Love Group. Singapore, another critical market, maintained steady performance with quarterly customer cash receipts of $474k.
Operations in Bangkok however were suspended in January 2024 due to poor financial performance and no decision has been reached around whether Love Group will continue pursuing the market.
“We saw continued growth in fiscal year 2024, driven by our Singapore business, which grew cash receipts by 95% year-on-year,” said Love Group CEO, Michael Ye.
“With the launch of our Ever dating app last quarter, we are excited to be able to pursue a multi-brand growth strategy heading into FY25. We plan to grow revenues in both personal matchmaking and online dating via our Lovestruck and Ever dating brands.
“Geographically, our focus will remain in Hong Kong and Singapore, with potential expansion planned for the UK.”
The resurgence of traditional matchmaking services highlights a broader shift in the dating landscape. Many individuals are becoming disillusioned with the casual nature of digital dating apps and are seeking more substantial and lasting relationships. Concerns around physical safety have also risen in recent years based on increased media attention around horror stories that started from digital dating apps.
Emily Maxwell is a business writer at The Sentiment with interest in the tech, fintech and retail industries.
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1 Comment
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