DateTix Group (ASX:DTX) has witnessed a 195% growth in sales for its premium matchmaking business to $96,000 in February 2017, compared to January 2017.
The company’s shares were last trading 20% higher intra-day on Monday, at $0.30.
DateTix is a mobile app that facilitates on-demand dates by connecting like-minded people who are nearby each other and free at the same time.
The significant increase was primarily driven by the strong growth at the Hong Kong matchmaking store, which delivered sales of about $66,000 in February 2017.
DateTix generated free cash flow profits of about $34,000 in February 2017 from the Hong Kong matchmaking store, resulting in a free cash flow margin of 52%.
The high free cash flow margins generated by the DateTix’s matchmaking business provides strong validation of its hybrid online plus offline business model.
By leveraging local marketing spend across both online dating and offline matchmaking businesses, DateTix is able to significantly increase its average lifetime revenue per user.
In the upcoming quarters, the company plans to expand its offline matchmaking operations into new markets, starting with London, Singapore and Bangkok, where the company already has a large online user base.
DateTix is also planning to replicate and scale its business model into major cities across Asia, first targeting markets that have large populations of affluent single professionals.