BRIEF: Hello Group forecasts another year of revenue decline for 2025
Online dating app operator Hello Group Inc. (MOMO.US), sometimes called the “Tinder of China,” reported on Wednesday that its revenue fell slightly in the third quarter, as strong gains in its overseas business largely offset weakness in its home China market.
The company, known in China for its signature Momo app, generated 2.65 billion yuan ($375 million) in revenue for the quarter, down 0.9% from 2.67 billion yuan a year earlier. Quarterly revenue from its overseas business grew nearly 70% year-on-year to 535 million yuan, rising to 20% of total revenue from 12% a year earlier. Its domestic revenue fell 10% to 2.12 billion yuan from 2.36 billion yuan a year earlier.
Hello Group’s revenue has fallen every year since 2021. It looks likely to continue that trend this year, forecasting a year-on-year revenue drop of 4.4% to 0.6% in the fourth quarter, extending its 1.7% decline in the first nine months of the year. The company’s profit fell 22% to 350 million yuan in the third quarter from 449 million yuan a year earlier.
Hello Group’s stock fell 1.1% in Tuesday trading in New York before the results were announced, and was up 1.4% in after-hours trade. The stock is down 4.3% this year.
By Doug Young
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