Match Group, Inc. (MTCH) has reported an 107.38 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $73.81 million, or $0.27 a share in the quarter, compared with $35.59 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $78.04 million, or $0.29 a share compared with $53.67 million or $0.24 a share, a year ago.
Revenue during the quarter grew 19.47 percent to $319.68 million from $267.57 million in the previous year period. Gross margin for the quarter contracted 205 basis points over the previous year period to 80.43 percent. Total expenses were 65.18 percent of quarterly revenues, down from 74.72 percent for the same period last year. This has led to an improvement of 954 basis points in operating margin to 34.82 percent.
Operating income for the quarter was $111.30 million, compared with $67.64 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $128.54 million compared with $99.31 million in the prior year period. At the same time, adjusted EBITDA margin improved 309 basis points in the quarter to 40.21 percent from 37.12 percent in the last year period.
"Match Group executed well in our first full year as a public company," said Greg Blatt, chairman and chief executive officer. "We had strong double digit revenue, operating income, Adjusted EBITDA and PMC growth, generally on track with our expectations at the time we went public. As we roll into 2017, we’re confident we can maintain that momentum." "The Princeton Review is a great company," said Mr. Blatt, "but it has become increasingly clear to us that its differences from our core dating businesses meaningfully exceed its similarities. Accordingly, this transaction allows us to focus on businesses closer to home, while placing TPR in an environment where we expect to see our vision of an integrated, digital one-stop shop for students realized soon, albeit in different hands."
Operating cash flow improves
Match Group, Inc. has generated cash of $234.11 million from operating activities during the year, up 11.97 percent or $25.02 million, when compared with the last year.
The company has spent $31.35 million cash to meet investing activities during the year as against cash outgo of $648.86 million in the last year.
The company has spent $31.51 million cash to carry out financing activities during the year as against cash inflow of $408.22 million in the last year period.
Cash and cash equivalents stood at $253.65 million as on Dec. 31, 2016, up 187.67 percent or $165.48 million from $88.17 million on Dec. 31, 2015.
Working capital turns positive
Working capital of Match Group, Inc. has turned positive to $57.32 million on Dec. 31, 2016 from negative $148.95 million on Dec. 31, 2015. Current ratio was at 1.18 as on Dec. 31, 2016, up from 0.58 on Dec. 31, 2015.
Debt comes down marginally
Match Group, Inc. has recorded a decline in total debt over the last one year. It stood at $1,176.49 million as on Dec. 31, 2016, down 3.32 percent or $40.38 million from $1,216.87 million on Dec. 31, 2015. Total debt was 57.43 percent of total assets as on Dec. 31, 2016, compared with 63.18 percent on Dec. 31, 2015. Debt to equity ratio was at 2.37 as on Dec. 31, 2016, down from 4.36 as on Dec. 31, 2015. Interest coverage ratio improved to 5.46 for the quarter from 3.53 for the same period last year.
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