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FriendFinder Networks' CEO Discusses Q2 2012 Results - Earnings Call Transcript

You’ll hear on today’s call some of our recent improvements to our sites, which we believe help support our long-term success. Although we’ve seen a decline in overall traffic from the closure of our co-brands, our member conversions improved 50 basis points to 4.2%. Additionally, the lower traffic and resulting subscriber loss has mainly come from brands that generate minimal revenue, thus making these [inaudible] extremely cost-effective relative to the subscriber loss.

Marketing efficiency is being driven mostly by an increase in analytics and has provided us with the ability to assess our marketing, granular real-time basis. During Q2, for example, we were able to quickly shut down campaigns that didn’t meet with our expectations, which allowed us to greatly, efficiently redirect spending elsewhere. While our overall strategy remains ROI-positive, we continue to refine our advertising spend in an effort to increase retention rates, boost subscriber growth as efficiently as possible. We will be opportunistic in our customer acquisition efforts in the second half of the year, and expect our revenues to benefit accordingly.

In keeping with our strategy to contain costs and focus on the parts of our business that have the greatest potential to drive shareholder value, earlier this month we sold JigoCity operations back to one of its original owners. While we have been making these operational changes and refocusing our efforts, there’ve been many successes along the way.

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