Love Group feeling rejected as dating is dialled back during COVID-19
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The ASX’s only online dating stock, Love Group (ASX:LVE), took a hit to its bottom line during the June quarter, with finding love becoming extremely hard during the pandemic.
Lockdowns, social distancing and a cutback in consumer spending have all played their part in reducing Love Group’s cash receipts, which slumped 29 per cent quarter on quarter and 57 per cent year on year.
But, thanks to cost cuts, it was able to record $87,000 in positive operating cash flow.
CEO Michael Ye admitted it was a challenging quarter and the future was anything but clear.
“The fourth quarter of fiscal year 2020 was a challenging one for us, primarily due to the impact of COVID-19 on consumer spending and willingness to visit our stores for in person consultations,” he said.
“Looking ahead to fiscal year 2021, we expect continued uncertainty in our business outlook as a result of the ongoing COVID-19 pandemic.
“We will continue to monitor and manage our operating expenses in line with our sales levels in order to maintain our balance sheet strength and liquidity.”
Love Group is headquartered in Hong Kong, a nation that prior to the COVID-19 hit was experiencing local tensions.
In the last year the territory has seen anti-Beijing protests and the consequential imposition of national security laws.
But in recent days Hong Kong has also seen a relapse in COVID-19 cases.
Yet the country was not as affected as other markets, with Love Group only witnessing a decline of 16 per cent in the Hong Kong market.
Singapore and London were more heavily hit. Cash receipts from Singapore plunged by 66 per cent and from London by 55 per cent.
Love Group shares were unchanged this morning but are down over 35 per cent in 12 months.