Dundee-based digital publisher brightsolid marked Valentine’s Day this week by announcing a new long-term relationship with Scottish online dating firm Cupid PLC.
Edinburgh-based Cupid has agreed a deal to operate the Friends Reunited Dating site a separate business from the social network of the same name.
As part of the agreement, Friends Reunited will continue to cross-market the dating brands which also include Friends Over Fifty and Swoon.
The dating products delivered revenues of £0.5m in the six months to September 30 last year. The licence for the dating brands will cost Cupid £0.6m initially, with a further payment of £0.2m upon achievement of certain targets.
In return Cupid will retain 95% of profits for the first two years and 100% beyond that. The agreement is expected to be immediately earnings enhancing for Cupid.
In its last major financial update for the six months to June 30, the firm reported a doubling in pre-tax profits to £3.94m and a 189% rise in revenues to £25.4m from £8.8m the previous year.
Cupid listed on the AIM exchange in June 2010. It now has over 34 million customers in 39 countries worldwide, including a large customer base in the North American market.
In the financial report, the company stated its intention to continue its global roll-out. It said it would move to make acquisitions where it could identify potential for growth.
The strategy has seen the company take a foothold in the Brazilian and German markets as well as expanding its operations in other European countries.
Cupid chief executive officer Bill Dobbie said he was delighted at the new tie-up with brightsolid and the Friends Reunited Dating brand.
He said: ”This agreement will enable Cupid to further strengthen its presence in the UK and Australian markets at low risk, and further leverage the Cupid platform.”
Chris van der Kuyl, chief executive of brightsolid, said the agreement with Cupid allows the Dundee Technology Park-based firm to concentrate on its core strategy of driving growth in its online publishing and technology businesses.
He said: ”Cupid has real strengths in the online dating sector and we believe the agreement will maximise the potential of the online dating services, whilst allowing brightsolid to concentrate on core activities.”