In the modern digital era, we rely so much on technology for work, education, and entertainment, yet it sort of diminishes opportunities for us to meet people in real-life and form meaningful relationships. This challenge is particularly felt among Gen Z and millennials, who are increasingly feeling the deprivation of romantic connections. However, instead of viewing technology as a hindrance, why not leverage it as a tool to pursue love and ultimately find our happy ending?
Dating service provider Love Group (ASX: LVE)’s customers, particularly in Hong Kong and Singapore, have done so, therefore have bumped up the Company’s cash receipts for the June quarter to $1.2 million. This was a 26% increase compared to the March quarter and 46% increase compared to the previous corresponding period (pcp). The Company’s Hong Kong operations observed a 34% increase to $893k versus $667k in the previous quarter, while the Singapore operations recorded $310k customer cash receipts, up 20% versus $257k in the previous quarter. Both are boosted by higher consultation volume.
However, Love Group’s Bangkok operations slightly struggled to keep up with the dating escapade, where quarterly customer cash receipts in the region was down 37% to $39k versus $62k in the previous quarter, driven by lower average order value. While the Company did not disclose the reason behind the drop, the lower average order value could be attributed to intense competition between dating apps in the region from fellow international apps and local-made apps.
The Company ended the June quarter with net cash inflow of $301k, rounding up its cash balance to $2.09m. This was a $293k increase from the previous quarter. The Company has no further finance facilities available.
Love Group Founder and CEO Michael Ye admitted that the Hong Kong and Singapore markets remain the Company’s bread and butter, demonstrated by the robust growth and earnings uptick in both regions. The Hong Kong and Singapore markets also contributed to 18% increase in the Company’s annual customer cash receipt growth and delivered record net operating cash flow of $649k in FY23 versus ($12k) in FY22.
Ye added, “We will continue to place profitability as our top priority, and pursue growth in both our existing personal matchmaking business as well as our new online dating business.”
Moving forward, Love Group plans to grow its personal matchmaking business in the existing markets of Hong Kong, Singapore and Bangkok, with potential expansion into London. The Company is also in the process of developing a new online dating app to target singles seeking serious committed relationships, with an initial geographic focus on Hong Kong and eventually targeting broader English-speaking markets.
Traditionally, it was very common for marriages in Asia to be arranged, but the emergence of technology has evolved the matchmaking industry. From early social media platforms like Friendster to now advanced mobile dating apps, technology has significantly aided people across Asia (and globally, of course) to search for romantic connections. In particular, a Statista research revealed that revenue in the matchmaking market in Hong Kong is projected to reach US$24.50m in 2023, undoubtedly making Hong Kong a lucrative market for Love Group. The market is projected to reach US$25.97m by 2027, with CAGR of 1.47% between 2023 and 2027. The number of people who use dating services in Hong Kong is expected to reach 424.20k users by 2027.
Meanwhile, Singapore grabbed the first spot among Southeast Asian countries who spent the most money on online dating services, surpassing Indonesia and Malaysia. According to a report by Nikkei Asia, Singaporeans spent US$7.1m last year while Indonesians and Malaysians each spent US$5.8m respectively, indicating a 260% and 220% growth from 2017. These figures indicate how online dating has surpassed traditional matchmaking in Asia, driven by the widespread availability of smartphones and internet access, even in rural regions. This has led to significant growth in online dating across the continent.
Love Group was formerly known as Datetix (ASX: DTX), offers dating services such as personal matchmaking, online dating, and singles events. Its Lovestruck app and website cater to singles aged 30 to 60 seeking long-term relationships in Hong Kong, Singapore, Bangkok, and the UK. The company prioritises profile quality and compatibility, providing curated matches through apps like Noonswoon (available in the Thai market) which gives users 12 curated and high-quality matches every day at midday, all of whom have similar socio-economic backgrounds and values.
Clara is a Business Reporter for The Sentiment.
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