Love Group sends investors crying into their pillows with $7.1m loss
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Online dating is expensive — for both punter and provider it seems.
Love Group’s (ASX:LVE) half-year revenue bump will set investor hearts on fire but its losses are enough to send the average lover into a dark spiral of Adele’s greatest hits.
The online dating company’s revenue surged from $769,845 to $2.4 million, proving that people are willing to pay for love.
But its losses blew out from $2.1 million in the first half of 2017 to $7.1 million in the first half of 2018.
Not much to love there.
Love Group wrote off all $6.9 million worth of intangible assets.
Stockhead is seeking comment from the company as to why.
Had the company not taken that charge, it would almost have made a profit.
The intangible assets consisted of goodwill — worth $6.8 million in the full year accounts — software, the website, the brand and the apps.
The annual report from 2017 stated that goodwill is subject to annual impairment testing and related to the acquisitions Datetix in Hong Kong, Lovestruck in the UK, and Noonswoon in Thailand.
At the time Love Group believed the divisions were worth much more than the goodwill ascribed to them.
Shares in Hong Hong-based Love Group closed on Tuesday flat at 9.5c.