FriendFinder to Complete IPO by End of Year

BOCA RATON, Fla. — FriendFinder Networks Inc. on Tuesday said that it intends to complete its IPO process by the end of the year.

FriendFinder, which operates the AdultFriendFinder network as well as about two dozen more networking sites, also owns Penthouse Media Group Inc.

FriendFinder, in a filing with the Securities and Exchange Commission, said it will use net proceeds of the public offering to redeem a portion of its outstanding senior secured indebtedness and to pay waiver fees to certain debtholders.

“The primary purpose of this offering is to repay some of our outstanding debt, including certain debt held by our affiliates, which we expect will decrease our interest expense and increase our flexibility with respect to our operations and growth strategy,” the company said in the filing.

According to a filing with the SEC, the company said that as of June 30, it had about $81 million in debt at the parent level. It also had about $442.1 million in debt in connection with its acquisition of Various, which was the preceding parent operator of its FriendFinder websites.

The filing, made public on Tuesday, included several statistics worthy to mention, including:

  • FriendFinder averaged 54 million unique worldwide visitors per month through June 30.

  • It also averaged 4.3 million new registrations on its websites each month for six months ended June 30.

  • FriendFinder, for the six months ended June 30, had a monthly average of approximately 1 million paying subscribers from whom it derived approximately 79.1 percent of its Internet revenue.

  • Its average monthly revenue per subscriber on its adult social-networking websites and general audience social-networking websites was approximately $21.67 and $18.70, respectively, for six months ending June 30.

  • FriendFinder had more than 200,000 participants in its marketing affiliate program from which it derived a substantial portion of our new members and approximately 44 percent of its revenue. For the six months ended June 30, FriendFinder made payments to marketing affiliates of approximately $30.3 million.

  • FriendFinder had more 1 million paying subscribers from whom it derived about 79 percent of its Internet revenue.

  • FriendFinder’s average monthly churn rate for its general audience social-networking websites decreased from about 21 percent for the six months ended June 30, 2008, to approximately 17 percent for the six months ended June 30.

FriendFinder Networks Inc. Divisions

Below is a list of subsidiaries of FriendFinder

Big Island Technology Group Inc.

Confirm ID Inc.

Danni Ashe Inc.

Fastcupid Inc.

FriendFinder California Inc.

FriendFinder GmbH

FriendFinder Processing (India) Private Ltd.

FriendFinder Processing Ltd.

FriendFinder United Kingdom Ltd.

FRNK Technology Group

General Media Art Holding Inc.

General Media Communications Inc.

General Media Entertainment Inc.

General Media UK Ltd.

Global Alphabet Inc.

GMCI Internet Operations Inc.

GMI Online Ventures Ltd.

Interactive Network Inc. Inc.

Penthouse Clubs International Establishment

Penthouse Digital Media Productions Inc.

Penthouse Financial Services N.V.

Penthouse Images Acquisitions Ltd.

PMGI Holdings Inc.

PPM Technology Group Inc.

Pure Entertainment Telecommunications Inc.

Sharkfish Inc.

Snapshot Productions LLC

Streamray (England and Wales)

Streamray Inc. (Nevada)

Streamray Inc. (St. Kitts)

Traffic Cat Inc.

Transbloom Inc.

Various Inc.

Video Bliss Inc.

West Coast Facilities Inc.

Source: FriendFinder Networks Inc.