A surge in interest in dating app Tinder is leaving investors in online rival Cupid feeling hot under the collar for the wrong reason, as the company burns through cash.
London-listed Cupid admitted today its half-year losses had increased by a fifth to £3 million and turnover from continuing operations more than halved to £7.2 million.
When discontinued operations are included the plunge in revenues was even steeper, down from £43.4 million a year ago.
The company has sold assets as it seeks to turn around the business, which owns sites UniformDating and LoveBeginsAt.
Cupid has lost ground to Tinder, which lets smartphone users see other “available” people within a small radius and contact them instantly — rather than traditional website dating, which is less mobile-friendly.
Cupid will launch its own app, Tangle, next month, for “people who physically cross paths to connect and meet”.
Chairman George Elliott admitted: “The rate of change in the dating market is accelerating as applications like Tinder build significant value, gaining share and putting pressure on traditional models.”
His priority is “arresting the company’s cash burn” and he is looking at “all options available” such as selling more subsidiaries. However, a sale of the whole business was not on the cards.
The shares, which have halved since April, fell 4 per cent.Reuse content