Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Matrimony.com Ltd (NSE:MATRIMONY, Financial) has launched several new initiatives, including Luv.com for next-generation serious relationships and ManyJobs.com for frontline and entry-level jobs, indicating a focus on diversification and growth.
- The company has introduced a commission-based model in wedding services, which could potentially lead to better revenue opportunities.
- Matrimony.com Ltd (NSE:MATRIMONY) has optimized marketing expenses, maintaining EBITDA margins for the matchmaking business at 22.6%, an increase from 21.3% a year ago.
- The company has been recognized as a Great Place to Work, reflecting a positive organizational culture and employee satisfaction.
- There is an expected uptick in revenue and billing growth from Q4 onwards, driven by the upcoming wedding season and strategic marketing efforts.
Negative Points
- Matrimony.com Ltd (NSE:MATRIMONY) experienced a decline in billing and revenue in Q2, with a 5.5% decrease quarter-over-quarter and 5.2% year-on-year.
- The company reported a loss of INR3.64 crores in the quarter, an increase from the previous quarter, primarily due to investments in new initiatives.
- The matchmaking business saw a decline in paid subscriptions by 6.4% quarter-over-quarter and 4.9% year-on-year.
- The Marriage Services segment continues to make losses, with revenue flattening and no immediate profitability in sight.
- Profit after tax is expected to be lower in the next quarter due to continued investments in new areas and increased marketing expenses.
Q & A Highlights
Q: How has the investment in non-South markets impacted revenue, and what are the future expansion plans?
A: Murugavel Janakiraman, CEO, stated that they have started investing in North India with campaigns and a brand ambassador, Anil Kapoor, to capture the market during the wedding season. They plan to continue investing in these regions to increase their market presence.
Q: Is the industry driven by marketing spend, and how does it affect competitiveness?
A: The CEO explained that while marketing spend is crucial, it cannot exceed certain limits. Matrimony.com aims to maintain visibility and brand presence without overspending, especially as some competitors have reduced their marketing budgets.
Q: What are the plans for the Elite or Premium Matrimony segment?
A: The CEO highlighted that Elite Matrimony is a small but profitable segment. They have set up experience centers in airports to enhance visibility and plan to focus on growing this premium segment.
Q: What is the outlook for the Marriage Services segment, and when can it become profitable?
A: Sushanth Pai, CFO, mentioned they are piloting a commission-based model in Tamil Nadu and Rajasthan, which they believe could be more successful. They are optimistic about reducing losses and achieving growth if the model proves effective.
Q: Why is Matrimony.com conducting a buyback at a premium?
A: The CFO explained that the buyback is a way to reward shareholders and was decided upon after discussions with the Board, despite missing earlier opportunities for indexation benefits.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
