Friendfinder Reports $11.8M Loss in 2nd Quarter
BOCA RATON, Fla. — Friendfinder Networks today reported a net loss of $11.8 million on lower revenue in the adult entertainment company's second quarter.
Friendfinder had revenue of $83.4 million in the past three months compared to $84.6 million in the same period last year. The company during the same period in the previous year reported a $4.9 million net loss.
Despite continued losses, Marc Bell, Friendfinder's CEO said the company is optimistic because of its "organic growth" and diversity in its suite of products.
"Overall we had a strong second quarter," Bell said in a conference call Monday. "We continue to look at forward-moving offerings, such as mobile, to build subscriptions. We are expanding to make available video for mobile devices, even off deck."
Ezra Shashoua, Friendfinder's CFO, said the company has seen a decline in revenue because lower subscriber base, particularly in Europe. "We are looking for ways to increase our conversion rate," he said.
Friendfinder saw a dip in adult social network subscribers in the past three months, ending with 834,157 compared to 969,542. Seventy-three percent of the company's revenue is derived from its Internet businesses.
Friendfinder depends substantially on affiliate marketing, garnering 47 percent in the past quarter, compared to 44 percent in the previous year. It compensated affiliates $14.5 million in the past three months, compared to $18.7 million in the previous year.
Friendfinder went public in May as it issued 5 million shares at $10 per share, grossing $50 million in fees, less $6.5 million in fees and commissions.