BRIEF: Hello Group’s booming offshore business fails to offset weakness at home

Dating app operator Hello Group Inc. (MOMO.US) on Tuesday reported its revenue fell 5.3% year-on-year in the first quarter to 2.39 billion yuan ($353 million), as continued weakness in its core China market failed to offset strong growth for its newer international business.

Revenue from the company’s China business, centered on its Momo and Tantan apps, fell 15.2% during the quarter to 1.79 billion yuan from 2.11 billion yuan a year earlier. Its international business rose 44% to 597 million yuan from 415 million yuan a year earlier, as the company cited strong performance in the Middle East and North Africa (MENA) region.

Hello Group’s profit during the first quarter fell 18.7% to 291 million yuan from 358 million yuan a year earlier.

The company said it expects its revenue to keep falling in the second quarter, forecasting a year-on-year decline of 2.7% to 6.5%. Its revenue has been falling on an annual basis since 2020, after peaking at about 17 billion yuan in 2019.

Hello Group’s shares fell 6% on Tuesday after the announcement. The stock is down 11.3% this year.

By Doug Young

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