Matrimony.com Financial Results for Q2-FY19 (versus Q2-FY18)
- Consolidated Revenue: Up 5.4% to Rs 88.17 Crores from Rs 83.59 crores
- Profit After Tax: Down 30.3% to Rs 13.4 crores from Rs 19.2 crores.
- Net Profit before Tax: Down 3.2% to Rs 18.2 Crores from Rs 18.8 Crores. PBT margin was 20.7%, down from 22.5%.
- EBITDA: down 15.53% to Rs 17.4 Crores from Rs 20.6 Crores. EBITDA margin down to 19.7% up from 24.6%
- Marketing spends: Rs 5.8 Crores
- Gross margin before marketing expenses: 41.0% versus 40.1%
Matrimony.com, an online matchmaking service focused on the matrimonial market, has over 300 community sites. In a statement, Murugavel Janakiraman, founder of Matrimony.com said that Q2 revenue was impacted due to seasonality, and the lower margins were due to higher marketing spend.
In any case, the matrimonial market is seasonal in nature, and customers aren’t expected to continue using the site once they get married. It’s likely that marketing spends will continue to remain high, and the focus will be on acquiring new customers, since retention is unlikely to be a significant consideration.
It’s not surprising that the company “will continue to invest additionally in marketing and as a result the EBITDA margin will be lower than the earlier period. Talent pool has been strengthened across the organisation which should result in higher performance in the coming quarters.” Note that last quarter, after expanding to the UAE, and launching in 8 Indic languages, Janakiraman had said that there would be higher marketing spend and “we expect to get back to much healthier growth.”
Matrimony.com’s service segments include matchmaking, and services like MatrimonyMandaps for wedding venue booking, MatrimonyPhotography for wedding photos and videos; MatrimonyBazaar for wedding related products and services such as jewellery, catering, honeymoon packages etc, and MatrimonyDirectory, which basically works like a listings of contacts of wedding-related service and products providers such as wedding planners, caterers, photographers, venues, jewellery etc.
Matrimony.com Operational Metrics
- 1 million profiles added overall
- 60% profiles added by the prospects themselves
- 17% of the profiles were added by parents
- 23% of the profiles were by siblings, relatives and others
- 10.4 million app installs
- Mobile and mobile site accounts for 91% of profile views
- 82% of personalised messages sent and received
- 83% of total free profiles registered
- 87% of interest expressed messages
- 78% of phone numbers viewed
- 745,000 paid subscriptions in FY18
Matchmaking segment results
Active profiles for the company grew by 12%, just prior to the wedding season, and the average realisation improved by 4.7%.
- Matchmaking Segment Sales: up 8.5% to Rs 83.5 Crores up from Rs 77 Crores
- Segment Revenue: up 7.7% to Rs 85.1 Crores from Rs 79.0 Crores
- Segment EBITDA: down Rs 23.5 Crores from Rs 26.7 Crores. EBITDA margin at 27.7%
- Gross margin before marketing expenses: 49.0%, same as Q2-FY18
- Marketing spend: up 6% as a percentage of revenue
Marriage Services segment results
The company said that the marriage services segment is in the nascent stage, and “had operational issues which have been addressed.” This segment is impacted by seasonality, and expects “to have a healthy growth from Q3/Q4 onwards.
- Marriage Services segment revenue: down 47.8% to Rs 2.4 Crores from Rs 4.6 Crores.
- Expenses: down 7.8% to Rs 3.5 Crores from Rs 3.8 Crores