- 11 Nov 2022
- ICICIdirect Research
MATRIMONY REPORTS WEAK NUMBERS
MATRIMONY - 501 Change: 1.10 (0.22 %)News:
Matrimony reported revenue of Rs 114.9 crore down 1% QoQ & up 4.5% YoY. Matchmaking services revenue declined by 1.5% QoQ & up 3% YoY to Rs 112.5 crore while marriage services reported a revenue of Rs 2.4 crore. Matchmaking services revenue was impacted due to decline in paid subscribers by 3.5% QoQ to 2.4 lakhs & decline in ATV by 3.4% QoQ & 7.2% YoY to Rs 4,396. Matchmaking services EBITDA declined by 3.3% QoQ & 18% YoY to Rs 25.9 crore while EBITDA loss of marriage services narrowed to Rs 3.3 crore. At the consolidated level the company reported EBITDA of Rs 18.5 crore down 6.3% QoQ & 26.3% YoY with an EBITDA margin of 16.1%, down ~90 bps QoQ & ~780 bps YoY. The company’s marketing spend remains elevated amid high competition with a spend of Rs 44.4 crore in match making segment & Rs 45.3 crore at company level. The company’s match making billings declined by 7% QoQ to Rs 106.6 crore while marriage services billing increased by 30.2% QoQ to Rs 2.6 crore.
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The company’s performance was hit by seasonality (higher number of inauspicious days for marriage across its markets). The company had earlier guided for Rs 500 crore billing in FY23, however considering muted run rate of only Rs 226 crore billing in H1, they are likely to miss the target, it also guided for single digit YoY growth in billings in Q3 and hopeful of recovery Q4 onwards. The elevated marketing spend are not translating into any meaningful subs growth which is concerning
Impact:
Negative