SEEKING ALPHA - Apr 12 - Tinder has recently reported a record high in the number of swipes. On March 29, Tinder witnessed over 3B swipes, which is the highest-ever recorded in a single day. More people swiping, however, does not guarantee earnings growth. As long as mobility is restricted and public gathering spaces remain closed, many dating app users will not be inclined to pay for premium services. Match Group makes money by charging users for subscriptions and displaying advertisements. Match Group CEO Shar Dubey confirmed that there has been an increase in the number of conversations on Tinder. But Match Group is seeing fewer new users joining their products. "In Europe, we've seen new subscriber declines of around 5% in aggregate since the crisis began, but in countries severely impacted by COVID-19, like Italy and Spain, we have seen more significant declines," says Shar Dubey. There's another disadvantage for Match Group. None of the apps offered by the company provide video calling facilities. Plenty of Fish recently announced a partnership with The Meet Group to roll out a live streaming feature. This is a step forward and will likely deliver desired results in the long term by enabling more interactions among users. However, the unavailability of video calling might push users away from dating apps in the short term. The Match Group will most likely report disappointing earnings growth for at least a couple of quarters. Shares might come under pressure as a result.
by Dilantha De Silva
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