Cupid's arrow scores 367% profit surge

Underlying profit soared by 367 per cent on the back of a string of acquisitions at home and abroad.

Chief executive Bill Dobbie said the Edinburgh-based company would continue buying websites to turn the company into a recognised global player in the growing market for on line dating, mobile and social network based dating services.

"America has a lot more expansion opportunities and we are investigating France and Germany at the moment," he said.

The firm, which joined the Alternative Investment Market in June, yesterday reported earning before interest, tax, depreciation and amortisation (ebitda) of 5.6m for 2010, against 1.2m the year before. The directors are proposing a dividend of 0.5p a share to be paid in July. Shares closed up 11.5p at 131p.

Formerly known as Easydate, the company bought sites such as cupid.com and flirt.com last year, moved them to its own software platform and set about promoting them.

Dobbie said the firm's large database of 23 million customers, its expertise in online marketing, and its international reach allowed Cupid to grow the businesses it acquired in ways the previous operators could not.

Cupid, which employs 20 people in the UK and about 240 in the Ukraine, has advertised heavily on Facebook and launched apps for smartphones.

Dobbie said Cupid's focus is to continue UK growth and demonstrate meaningful financial progress in the USA, but it intends to start trading in mainland Europe. Next year it hopes to see further expansion in Australasia and developing countries such as India.

The firm's goal is to have more than 50 per cent of revenues coming from overseas by the end of 2011, while continuing UK growth.

The company expects to see the full benefit of last year's acquisitions in 2011, with analysts forecasting revenues of 44m and profits of 9m based on organic growth.