Adult social networking site FriendFinder Networks Inc. (NASDAQ: FFN) reported quarterly and annual earnings after markets closed last night. The company posted a quarterly EPS loss of -$0.42, far worse than the consensus estimate of an EPS profit of $0.50. Revenue for the quarter totaled $81.7 million versus a consensus estimate of $83.13 million.
The company’s CEO said:
Although we experienced incremental improvements during the quarter in Europe, we continue to encounter strong headwinds as we work to introduce additional product offerings and payment options to address low user conversion and transaction acceptance rates. Our decision to scale-back our current activities will allow us to concentrate our efforts on markets that provide us with the best near-term opportunity to maintain our market share and grow our business.
The company’s guidance for the 2012 fiscal year calls for annual revenues of $340-$350 million and adjusted EBITDA of $75-$80 million. The adjusted EBITDA estimate is well below the $92.9 million the company reported for this year and is due to increased costs in the first half of the year as the company tries to repair its customer acquisition problems.
Shares are down about -14.6% at $1.40 in a 52-week range of $0.51-$10.01.