Company to Host Conference Call Today at
4:30 pm ET
BERLIN, July 11,
2023 /PRNewswire/ -- Spark Networks SE (NASDAQ: LOV)
(the "Company"), a leading social dating platform for meaningful
relationships, today announced several key developments in its
ongoing transformational journey, signaling a new chapter in the
Company's strategic direction.
Spark has completed its process to evaluate a wide range of
strategic alternatives for the Company, including a potential sale,
merger, or other transaction. As a result, the Company is moving
forward with an extensively considered new transformational plan
that is intended to drive Spark forward with growth as well as
improved margins, EBITDA and cash flow that the Company plans to
use to pay down debt and support its operations going forward.
The Company took the first step in implementing this strategy by
teaming with a leading performance marketing agency to design an
integrated marketing program aimed at driving growth across its
brands. Moving forward, the Company intends to transfer a
significant portion of its operations to one or more third-party
managed service providers with the goal of achieving long-term cost
reductions, and to invest in new product features intended to
increase customer acquisition and retention.
Effective today, Colleen Birdnow
Brown, the current Chair of the Company's Board of Directors
(the "Board"), will step in as interim Chief Executive Officer. Ms.
Brown is the former CEO and Director of Fisher Communications
(FSCI), a multimedia and technology company. She has served in
multiple executive roles in media and technology in addition to her
board leadership roles over her career. The Board feels Ms. Brown
is particularly suited to the interim CEO role given her previous
operating experience as a CEO, her particular knowledge of the
Company and her experience in accounting, finance, and risk
management.
"Spark is at a critical moment, and I'm pleased to partner with
the management team and key stakeholders as we implement the next
phase in our plan to return Spark to growth," Ms. Brown said.
Effective July 7, 2023,
Chelsea Grayson left her role as CEO
of Spark and as a member of the Board to return to her career as a
board member and advisor. "We'd like to thank Chelsea for stepping
into the CEO role and leading the company through this transitional
moment. Chelsea answered the call when Spark needed her most, and I
look forward to working with her again on other ventures," Ms.
Brown said. During Ms. Grayson's time as CEO, the Company completed
the first phase of its transformation, including identifying and
engaging a leading performance marketing agency, implementing a new
enterprise resource planning system to enhance its financial
management, and focusing on cost-cutting to optimize margins.
"My return to full-time board and advisory work will free up
space on Spark's board for others with skill sets and networks that
are suitable for this part of the company's lifecycle," Ms. Grayson
added.
Ms. Brown added: "Our near-term focus is to reduce our fixed
cost structure, drive increased predictability in revenue, and
create additional financial flexibility for the Company. As we
execute this transformation, we expect these steps to improve cash
flow, operating margins, and profitability. By
simplifying our focus and reducing complexity, we believe we can
maximize value for all stakeholders. We look forward to sharing
updates on the company's progress at the appropriate
milestones."
Investor Conference Call
Spark Networks management will host a conference call and
live webcast for analysts and investors today at 4:30 p.m. Eastern
Time (1:30 p.m. Pacific
Time).
To access the live call, dial 1-833-816-1417 (US
and Canada) or +1 412-317-0510 (International) and ask to join
the Spark Networks' call.
A live and archived webcast of the conference call will be
accessible on the Investor Relations section of the Company's
website at https://investor.spark.net/investor-relations/home. In
addition, a phone replay will be available approximately two hours
following the end of the call and will remain available for one
week. To access the call replay, dial 1-877-344-7529 (US) or +1
412-317-0088 (International) and enter the replay passcode:
9612007.
About Spark Networks SE
Spark Networks SE (NASDAQ: LOV) is a leading social dating
platform for meaningful relationships focusing on the 40+
demographic and faith-based affiliations. Spark's portfolio of
premium and freemium dating apps include Zoosk, EliteSingles,
SilverSingles, Christian Mingle, Jdate, and JSwipe, among
others. Spark is headquartered in Berlin, Germany, with offices in New
York and Utah.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, statements involving known and unknown risks,
uncertainties, and other factors that may cause Spark Networks'
performance or achievements to be materially different from those
of any expected future results, performance, or achievements. These
statements include, without limitation, statements regarding
whether our new transformational plan will drive the Company
forward with growth as well as improved margins, EBITDA and cash
flow; whether we will use cash flow to pay down debt and support
our operations going forward as intended; whether our integrated
marketing program will drive growth across our brands; whether we
will transfer a significant portion of our operations to one or
more third-party managed service providers and whether doing so
will enable us to achieve long-term cost reductions; whether we
will invest in new product features and whether those features will
increase customer acquisition and retention; whether we will
implement our plan as intended; whether we will reduce our fixed
cost structure, drive increased predictability in revenue, and
create additional financial flexibility as expected; whether we
will improve cash flow, operating margins, and profitability
as expected; and whether we will successfully simplify our focus
and reduce complexity, thereby maximizing value for all
stakeholders.
Any statements in this press release that are not statements of
historical fact may be considered to be forward-looking statements.
Written words, such as "believes," "hopes," "intends," "estimates,"
"expects," "projects," "plans," "anticipates," "guides," and
variations thereof, or the use of future tense, identify
forward-looking statements. By their nature, forward-looking
statements and forecasts involve risks and uncertainties because
they relate to events and depend on circumstances that will occur
in the near future. There are a number of factors that could cause
actual results and developments to differ materially. Additional
factors that could cause actual results to differ are discussed
under the heading "Risk Factors" in Spark Networks' most recent
Annual Report on Form 10-K and in other sections of Spark Networks'
filings with the Securities and Exchange Commission ("SEC"), and in
Spark Networks' other current and periodic reports filed or
furnished from time to time with the SEC. All forward-looking
statements in this press release are made as of the date hereof,
based on information available to the Company as of the date
hereof, and the Company assumes no obligation to update any
forward-looking statement except as required by law.
Contact:
Todd
Kehrli
MKR Investor Relations, Inc.
lov@mkr-group.com
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SOURCE Spark Networks SE