Thu, 30 May 2013 | DIVISION SALE
Dating company Cupid plc is in discussions about the sale of its 'casual dating' division.
Based in Edinburgh, the firm owns a number of dating websites and has made a successful business out of creating niche sites as well as those with a broader appeal.
The business confirmed that it is “in discussions with third parties”, adding that these could result in an offer being put on the table. The talks relate to the division that owns the sites benaughty.com and flirt.com, among others. Its more traditional and niche divisions, including Uniform Dating, are not included in the sale.
Cupid's shares were up following the announcement, although they dropped off again towards the end of the day. On a longer-term view, the firm expects half-year revenues to be up 13 per cent on the same period last year, due to strong performances from Assistance Genie Logiciel and Uniform Dating. However, sales are set to be one per cent lower than the previous year on a like for like basis, while pre-tax profit is expected to come in at around £2.5 million for the first half of the year, compared to 2012's figure of £5.9 million.
A statement from the firm explained its strategy: "As stated in our March release we continue to focus on devising and implementing a number of initiatives aimed at improving the customer experience and the quality of traffic.
"Whilst the changes will have a short-term impact on revenues and profitability, the company believes that they will increase lifetime value of customers and reduce churn rates."
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