FriendFinder Networks – FFN – Reports Financial Results For Second Quarter 2012
FriendFinder Networks Inc. (NasdaqGM: FFN) , a leading internet and technology company providing services in the rapidly expanding markets of social networking and web-based video sharing, today announced financial results for the second quarter and six months ended June 30, 2012.
- Adjusted EBITDA Increased 27% to $16.9 Million in Q2 2012 from $13.4 Million in Q1 2012
- Live interactive revenues increased 12% year over year and 5% from prior quarter
- Company Undertakes Strategic Realignment of Efforts to Support Major Revenue-Generating Properties
“We remain focused on our growth strategy and continue to undertake the necessary steps to optimize our business, which includes retaining greater control of our cost structure and maximizing our brand equity. We have therefore shifted a majority of our focus to supporting our most successful, dominant revenue-generating properties. As part of this effort, we have begun the process of closing nearly 5,000 co-branded websites, which we expect to be fully completed by the end of the year,” said Anthony Previte, Chief Executive Officer of FriendFinder Networks. “It has become clear that our primary brands, which account for a majority of our revenue, are more manageable, profitable and ultimately offer the greatest opportunity for growth going forward. As a result, we have shifted the focus of our affiliate network strategy to support further development of these primary brands. In parallel to this effort, we have consolidated our internal business units to realign our focus. These changes have resulted in a substantial increase in Adjusted EBITDA relative to the first quarter 2012 and stronger recognizable synergies between our business units.”
“Our Live Interactive segment remains a strong and positive contributor to our business, attaining its tenth consecutive quarter of year over year revenue growth. Additionally, we have started to experience some positive traction in Europe. For the first time in six quarters, we saw a slight dollar increase in European revenue over the previous sequential quarter; it is significant to note that this increase was despite the weakening value of the Euro versus the dollar over the past quarter. This improvement indicates that our geographic price testing in different European regions has started to bear fruit, and we expect this revenue growth to continue as renewal cycles kick in. We anticipate that geographic price testing and other initiatives, when combined with our focus on brand equity and customer acquisition, will lead to improvements to both the top and bottom lines.”
About Friendfinder Networks Inc. – FFN
FriendFinder Networks Inc. (FFN) is an internet-based social networking and technology company operating several of the most heavily visited websites in the world, including AdultFriendFinder.com, Amigos.com, AsiaFriendFinder.com, Cams.com, FriendFinder.com, BigChurch.com and SeniorFriendFinder.com. FriendFinder Networks Inc. also produces and distributes original pictorial and video content and engages in brand licensing.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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