FriendFinder Reports Lower Revenue as It Cuts Co-Branded Sites

SUNNYVALE, Calif. — FriendFinder Networks Inc. today reported a net loss of $7.7 million in its third quarter as it saw revenue shrink in the same quarter to $77.7 million compared to $82.7 million in the same period last year.

FriendFinder said its revenue in the quarter was negatively impacted by a decrease in affiliate-based traffic and lower-resulting Internet revenue as the company continues to eliminate 5,000 "lower margin" co-branded websites.

Anthony Previte, FriendFinder's CEO, said in a conference call that by eliminating the co-branded sites the company is able to refocus "efforts on more effectively supporting our dominant revenue-generating properties." FriendFinder announced it was cutting 5,000 co-branded white label sites in August.

"Reflective of these efforts was a 7.5 percent quarter-over-quarter and a 6.2 percent year-over-year improvement in average revenue per user within the adult segment during the third quarter," Previte said.

But the company ended with less subscribers in the past quarter — 763,000 — compared with the third-quarter subscription number last year — 850,000.

The company also said that its bottom line also was financially impacted by $1 million in fines imposed by Visa USA during the quarter.

Previte said the company is appealing the fines and has launched a campaign to effectively scrub more transactions.

FriendFinder also disclosed that last week it retained CRT Capital Group LLC as its financial advisor to help explore opportunities to refinance our long-term debt. The company said it didn't make a payment due Nov. 5 relative to loans from principal lenders, but 80 percent of lenders said they would forebear agreements.

"These agreements recognize the strengthening of our business and signal the continued support of our senior lenders," Previte said. "We will continue to pay interest during the refinancing phase." 

Previte said the company is close to launch a new interactive TV product in Europe "that we are very excited about" and that it plans to aggressively monetize social media initiatives. He also said that the flagship Penthouse brand will soon release an API that should help stimulate growth.

FriendFinder Networks Inc. operates AdultFriendFinder.com, Amigos.com, AsiaFriendFinder.com, Cams.com, FriendFinder. com, BigChurch.com and SeniorFriendFinder.com. FriendFinder Networks Inc. also owns Penthouse magazine and its video production line. It also engages in brand licensing.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Adult Time Drops New Installmet of 'MILF Overload'

Adult Time has released the latest installment of director Jim Powers' series "MILF Overload."

Coco Bae Fronts Latest From Reality Kings

Coco Bae stars with Jordi El Nino Polla in the latest release from Reality Kings.

Eve Sweet Stars in Latest From Blacked Raw

Vixen Angel Eve Sweet stars with Vixen Media Group (VMG) exclusive Jason Luv in the latest release from studio imprint Blacked Raw.

Brazzers Drops Season Finale of 'MILF Quest'

Brazzers has released the final episode of the first season of "MILF Quest," hosted by Cherie DeVille.

Beca Barbie Makes Her Hookup Hotshot Debut

Beca Barbie has made her debut for Hookup Hotshot alongside Nade Nasty.

2025 XBIZ Amsterdam Website Launches With Call for Speakers

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

ProDx Health Introduces 'Assured MoFi ID' Testing Program

ProDx Health has introduced its new Assured MoFi ID Program for testing.

NC Governor Vetoes Bill Targeting Adult, Could Face Override

North Carolina Governor Josh Stein today vetoed a bill imposing new regulations that adult industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Eye of Love Expands 'Bloom' Collection

Eye of Love has introduced two new perfume oils from its Bloom collection.

Nobü Adds to 'Essentials' Collection

Nobü is expanding its Essentials collection with three new pleasure products.

Show More