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By Arjun Panchadar
(Reuters) – Match Group Inc predicts a tight quarter-on-quarter benefit below analysts' estimates on Tuesday, affected by higher costs for Tinder and its other dating applications, their stock shipments dropped 10 percent in the aftermarket to the market
Match Group, who plays with his cupid through his PlentyOfFish and Match.com services, has invested heavily to take his Tinder vacation cash to emerging markets and promote his other dating services as competition in the market of young people warm up
Marketing costs expect to increase about 20 percent year after year for Tinder and its other brands such as Hinge and Pairs.
The company expects adjusted earnings in the fourth quarter to be between $ 165 million and $ 170 million, below estimates of $ 170.9 million, according to Reefivist's IBES data.
The company also expects fourth-quarter revenue to be between 440 million and 450 million dollars, below estimates of 454 million dollars, largely due to a saving of about $ 6 million from a dollar The stronger and softness of indirect revenue due to the General Regulation of Data Protection and minor impressions.
Legislation was put into practice by the European Union in May to protect personal information and forced online gamers to make sure they have permission from users to manage their personal data.
Tinder – where users swipe left or right on their phones to signal the interest of a person – added 344,000 average subscribers in the last quarter, which represents a total of 4.1 million.
The total subscribers of the Match Group amounted to 8.1 million in the third quarter.
Match Group said it now expects revenues throughout the year to reach the top end of its previous forecast of $ 1.68 billion to $ 1.72 billion. Analysts expected revenues of $ 1.72 million.
Net profits attributable to shareholders fell to $ 130.2 million, or 44 cents per share, in the quarter ended September 30, of $ 287.7 million, or 98 cents per share a year earlier.
In a way adjusted, the company obtained 39 cents per share, above the estimates of 36 cents analysts.
Total revenues rose 29.3 percent to 443.9 million dollars, exceeding estimates of 438.1 million dollars.
Dallas-based Dallas-based shares have risen almost 90 percent in the last 12 months, although 22 percent fell in May through the Facebook plan to create their own dating service.
Company shares fell 9.4 percent to 46.64 dollars.
(Reports by Arjun Panchadar and Pushkala Aripaka in Bengaluru; Editing by Shounak Dasgupta, Bernard Orr)