Matrimony.com (MATRIMONY) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated income grew 14.5% YoY and EBITDA rose 31.8%; matchmaking remained the core profit engine while Marriage Services expanded from a smaller base.

• Net profit included a one-time Rs 1,281.92 lakh contribution from the promoter tied to settlement of US litigation.

• Growth plans prioritize user acquisition, customer experience, mobile investment, brand building, marriage-service expansion, product development and operating efficiency.

Financial highlights

• Consolidated revenue from operations was Rs 33,544.49 lakh vs Rs 29,281.91 lakh in FY17; total income was Rs 33,553.82 lakh vs Rs 29,292.95 lakh.

• Consolidated EBITDA reached Rs 7,768.72 lakh, up 31.8% YoY; PBT before exceptional items rose 54.0% to Rs 7,293.33 lakh.

• Consolidated PAT was Rs 7,386.26 lakh vs Rs 4,296.66 lakh; FY18 includes the one-time Rs 1,281.92 lakh promoter contribution.

• Consolidated operating cash flow before exceptional items and tax was Rs 8,301.51 lakh; cash generated from operations was Rs 9,610.66 lakh.

Outlook and guidance

• Growth opportunity supported by expanding internet and mobile access, a large unmarried population, and continued social acceptance of arranged marriages; investment focus remains on products, processes and brand.

• Strategic priorities include expanding the user base, improving customer experience, investing in mobile, strengthening brands, scaling marriage services and driving efficiencies.

• Marriage Services is at an early stage; MatrimonyMandaps launched in Q4 FY18 and is expected to incur cash losses until it reaches material scale.