PRESS RELEASE - Nov 10 - Spark Networks' revenue for the Q3 '10 was $9.9M, a decrease of 10% compared to $11.1M for the Q3 '09, and a decrease of 4% compared to $10.3M in the prior quarter. Net income was $1.2M, compared to $1.0M in Q3 '09. Jewish Networks revenue was $6.8M, a 4% decrease YOY. Other Affinity Networks revenue was $2.7M, a decrease of 14% YOY. General Market Networks revenu was $264,000, a decrease of 54% YOY. For more details, download Spark Networks Financials PDF or or visit the link on the side bar under 'FINANCIALS'.
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Reading through http://www.marketwatch.com/story/spark-networksr-reports-third-quarter-2010-financial-results-2010-11-10?reflink=MW_news_stmp: if my math is right, and JDate/Jewish Networks makes as much as I think it does, then Spark is losing a ton of money on every other singles site it owns.
JDate/Jewish Networks made $6.8M this past quarter, and likely 75% of that was net profit (or more - being conservative here - this site is a total cash cow for them). So, that would be $5.1M net.
Spark's overall profit was only $1.2M for the entire company on $9.9M revenue (a paltry 12% return), which means they lost $3.9M on everything else ($1.2M - $5.1M)!
Revenue is great, sure, but profit is king. It sounds like they are massively subsidizing everything they own from JDate.
Or, am I missing something here? What other sites do they have that make any profit - at all?
Posted by: Johnson Paul | Nov 11, 2010 at 05:03 PM