Match Group (MTCH) has reported 180.38 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $20.05 million, or $0.07 a share in the quarter, compared with $7.15 million, or $0.03 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.78 million, or $0.12 a share compared with $30.56 million or $0.11 a share, a year ago.
Revenue during the quarter grew 14.73 percent to $298.76 million from $260.40 million in the previous year period. Gross margin for the quarter contracted 289 basis points over the previous year period to 80.30 percent. Total expenses were 80.30 percent of quarterly revenues, down from 86.87 percent for the same period last year. This has led to an improvement of 658 basis points in operating margin to 19.70 percent.
Operating income for the quarter was $58.87 million, compared with $34.19 million in the previous year period.
“Match Group is off to a solid start in 2017,” said Greg Blatt, chairman and chief executive officer. "Strong paid user growth continues, and we’re making meaningful progress on our product and marketing strategies. We also completed our sale of The Princeton Review to better focus our attention on our core businesses and strengthen our balance sheet. We’re on track to have a strong year."
Operating cash flow improvesMatch Group has generated cash of $89.99 million from operating activities during the quarter, up 6.56 percent or $5.54 million, when compared with the last year period. Cash flow from investing activities was $90.61 million for the quarter as against cash outgo of $2.36 million in the last year period.
Cash flow from financing activities was $5.03 million for the quarter as against cash outgo of $26.63 million in the last year period.
Cash and cash equivalents stood at $436.19 million as on Mar. 31, 2017, up 220.97 percent or $300.29 million from $135.90 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Match Group has turned positive to $231.24 million on Mar. 31, 2017 from negative $125.91 million on Mar. 31, 2016. Current ratio was at 1.71 as on Mar. 31, 2017, up from 0.67 on Mar. 31, 2016.
Days sales outstanding went down to 21 days for the quarter compared with 24 days for the same period last year.
At the same time, days payable outstanding went up to 152 days for the quarter from 57 for the same period last year.
Debt remains almost stableTotal debt of Match Group remained almost stable for the quarter at $1,206.21 million, when compared with the last year period. Total debt was 56.63 percent of total assets as on Mar. 31, 2017, compared with 61.47 percent on Mar. 31, 2016. Debt to equity ratio was at 2.16 as on Mar. 31, 2017, down from 3.93 as on Mar. 31, 2016. Interest coverage ratio improved to 3.11 for the quarter from 1.68 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
