Selling sex, or the prospect of sex, looks like the ultimate in recession-proof business.
That’s the obvious conclusion to draw from half-year results by Cupid, the online dating outfit behind websites that span the traditional to the racy.
Revenues have doubled to £38.6 million, with new markets such as Canada, France, Italy, Spain and Germany all growing apace despite economic turmoil in most of those countries.
Profits are flat at £5.9 million, but chief executive Bill Dobbie, and a growing legion of City fans, think the business has a bright future. Floated on AIM two years ago after five years as a private affair, Cupid now offers sites to cater for most tastes such as flirt.com, benaughty.com, datingforparents.com and maturedating.co.uk.
Dobbie says a relaxation in attitudes and more usable mobile phones is helping drive traffic. “Online dating is much more socially acceptable than it used to be,” he says. “And a third of new registrations come from mobile phones. People enjoy using the sites on their phones. Chatting, flirting, looking at photographs is something you can do easily on a phone.”
Dobbie says the “niche” strategy is proving the right one. “Mature dating is growing very strongly. Be naughty is as racy as we can make it. We are trying to make it a good, fun brand that brings a smile to people’s faces,” he says.
Cupid is a rumoured target for larger rivals, with claims that US giant Match.com is eyeing a bid. Dobbie, who owns 15% of the equity, says there has been no approach, but concedes: “Match are always looking at opportunities.” Asked if his business is recession-proof, he replied. “I don’t know if I would go that far. I would say that we have grown strongly throughout the recession.”
Paul Morland at Peel Hunt, the in-house broker, says: “Cupid continues to deliver excellent revenue growth. Key highlights in the period include strong growth in North American market share and demonstrable success of targeted marketing spend.”
The shares slipped 1.86p to 205.14p.
