Investment summary

Cupid is now operating in the top rank of global players, despite only being set up six years ago. The strategy of careful international acquisition and organic growth, with continued heavy investment in marketing, is delivering growing subscription revenues in a market where the winners and losers are polarising. Board changes were announced in March to help equip the group for its next phase of development. Trading continued strongly in the first two months of FY12, with progress in forecast earnings (and the placing of some of the departing co-founder's stake) bringing down what had been a demanding rating to an attractive level.

Last updated on 23/04/2012

Industry outlook

The mass/commodity end of the market is maturing and the economics have shifted, leaving some operators exposed. With the ongoing high requirement for marketing spend, corporate activity is high as players jostle for market share. Meanwhile there are substantial changes to the way media is absorbed requiring providers to invest heavily, with mobile particularly in the ascendant.

Last updated on 23/04/2012