Matrimony Sees A 64.3% Growth In Net Profit For Q4 FY18

The online matchmaking platform Matrimony has again released an all positive earnings release for the Q4 FY 18 as well as the overall year performance for the company.

As per the earnings release, the company gained a consolidated revenue of $12.63 MN (INR 84.39 Cr) for Q4 2018. This is a growth of 11.9% against the corresponding quarter of the previous year. On the Y-o-Y basis, the company registered a consolidated Revenue of $50.23 Mn (INR 335.54 Cr) for the year, a growth of 14.5% against the corresponding previous year.

Further, the company’s consolidated Net Profit (Total comprehensive income) for the year was at $10.98 Mn (INR 73.36 Cr), a growth of 72.3%, against the corresponding previous year. For Q4, this figure reaches $2.48 Mn (INR 16.61 Cr), a growth of 64.3%, against the corresponding quarter of the previous year.

Here are a few key takeaways from the Matrimony FY18 earnings release:

• For Q4 2018,
  – EBITDA was at $2.98 Mn (INR 19.95 Cr) as against $2.36 Mn (INR 15.80 Cr) for the corresponding quarter of the previous year, a growth of 26.3%.
  -The Profit before Tax and exceptional item for the quarter was at $2.98 Mn (INR 19.94 Cr) as against $2 Mn (INR 13.42 Cr) for the corresponding quarter of the previous year, representing a growth of 48.6%.

• For FY 18,
  -The Earnings before Interest, Tax and Depreciation (EBITDA) for the year was at $11.6 Mn (INR 77.69 Cr) as against $8.8 Mn (INR 58.95 Cr) for the corresponding previous year, a growth of 31.8%.
  -The Profit before Tax and exceptional item for the year was at $10.9 Mn (INR 72.93 Cr) as against $7.08 Mn (INR 47.35 Cr) for the corresponding previous year, representing a growth of 54.0%.

The Driving Force Behind Matrimony’s Growth In FY18

As per the earnings release, matchmaking is the primary segment driving revenues for Matrimony.

As Murugavel Janakiraman, Managing Director said, “Matchmaking business witnessed a profile growth of 15.8% year on year. During Q4 secondshaadi.com, an exclusive portal for divorcees has been acquired and combining with our existing portal divorceematrimony.com, we have become the leading player in this segment.  We will continue to invest in brand building in the matrimony segment and expect the revenue to expand in coming quarters”.

Matchmaking segment revenue for Q4 was at $12.1 Mn (INR 81.37 Cr) as against $10.73 Mn (INR 71.69 Cr) for the corresponding quarter of the previous year resulting in a growth of 13.5%. On the other hand, the Matchmaking segment revenue for the year FY18 was at $47.79 Mn (INR 319.08 Cr) as against $42.05 Mn (INR 280.76 Cr) for the corresponding previous year resulting in a growth of 13.6%. “Around 1,08,000 success stories have been reported to the Company in the financial year 2018,” added a company spokesperson in a media statement.

The company further claimed that overall profiles added for the quarter were 9.94 lakhs, of which 60% were posted by the prospects themselves, 17% of the profiles were added by parents and 23% of the profiles were by siblings, relatives and others.

Scope Of Matrimony In India’s Online Matchmaking Market

Launched in 2001, Matrimony is one of the oldest online matchmaking platforms and has diversified its businesses catering to the Indian wedding market. In September 2017, the company went for an IPO and prior to that Matrimony had secured $35.3 Mn (225.9 Cr) from anchor investors, including Smallcap World Fund, HDFC Trustee Company, Baring Private Equity India, BNP Paribas Arbitrage, Goldman Sachs India, and DB International (Asia).

In April 2016, Matrimony had launched a private messenger for couples called a 2gether app. Matrimony has also areas such as MatrimonyPhotography, MatrimonyBazaar, MatrimonyMandaps, and CommunityMatrimony, a consortium of over 300 community matrimony websites. However, the leading business for it remains Bharat Matrimony.

In the matchmaking business, Matrimony competes with the likes of Shaadi.com, Times Group’s SimplyMarry and Info Edge-owned Jeevansaathi.

A report quoted KPMG as saying that India’s annual spending on marriage-related services stands at $57 Bn and there lies a group of more than 100 Mn unmarried Indians aged between 18 and 35.

In the online matchmaking business, companies such as TrulyMadly, Tinder, Happn, Woo, Aisle etc are currently dominating. A Ken research of 2016 that the online matchmaking industry revenues are expected to be worth $318 Mn (INR 20.6 Bn) by 2020.