Profits double at Irish arm of Tinder-owning company
The Irish subsidiary of the tech giant behind popular dating app Tinder more than doubled its profits last year to $63.2m (€57.5m) - but was required to pay no tax on its earnings in Ireland.
IAC Search and Media Technologies Limited is the Irish arm of US company IAC - the majority stakeholder in dating apps Tinder, Match, OkCupid and Plenty of Fish. It also operates Vimeo, the Daily Beast and Investopedia.
Newly filed accounts show that turnover at the Irish subsidiary soared by 66pc to $84.5m (€76.7m) last year. The firm's revenue comprised royalties paid by its subsidiary undertakings.
Overall profits increased by more than 108pc to $63.2m (€57.5m) during 2018. However, no tax was payable on these earnings in Ireland due to favourable laws that apply to royalties and patents.
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In its annual report, the company's directors attributed the increased profitability to "changes in the business mix" as well as accumulated interest received on intergroup loans.
The directors, who are based in the US and the Cayman Islands, approved the payment of a $235.5m (€213.8m) dividend to the Irish firm's parent company IAC Applications Holding Limited Partnership.
The payment of the dividend left the company with accumulated profits of $58.3m (€52.9m), including a cash balance of $14.9m (€13.5m).
It had debts of almost $2.4m (€2.2m) and was owed $27.3m (€24.8m). Both figures relate almost exclusively to other group undertakings.
The only tangible asset owned by IAC Search and Media Technologies Limited was computer equipment worth $19,865 (€18,029). It also had financial assets valued at $60.3m (€54.7m), and intangible assets such as trademarks worth just over $8m (€7.3m).
Its ultimate parent company, IAC, is headquartered in New York and owns more than 150 brands in 100 countries. It purchased a majority share in Match Group, which operates Tinder, in 2015. It also acquired Plenty of Fish for $575m (€521.9m) later that year.
Other popular websites and applications operated by the company include CollegeHumor, Ask.com and Dotdash.