BOCA RATON, Fla.—FriendFinder’s Marc Bell will step down as CEO of the company, effective July 1, he announced in a statement today in conjunction with the company’s release of it’s quarterly and year-end financial statements.
Current Chief Operating Officer Anthony Previte will be transitioning into the role of CEO and will assume that position upon Bell’s departure. Effective tomorrow, Previte will take on the additional role of president of the company. He has been with the company as COO since February 2008.
Bell will continue to be involved with FFN as co-chairman and chief strategy officer.
“Anthony and I have worked together for many years both at FriendFinder and before, and I can't think of a better person to continue my legacy here at FriendFinder,” Bell said. “After ten years of commuting to the West Coast, I have decided that it is time for a change and Anthony has earned and deserves the privilege of becoming FriendFinder's next chief executive officer.”
Bell did not announce his reasons for stepping down as CEO, but it could be related to his interest in running for Congress in Florida, where he lives. Bell would be running for a seat in Palm Beach-Broward District 22, which represents those from Fort Lauderdale, Fla., to Palm Beach Gardens, Fla., along the coast. It extends westward as far as Coral Springs, Fla.
Bell also announced changes to the makeup of FFN’s board of directors.
"We are very excited that Donald Johnson, Steven Rattner and Kai Shing Tao have agreed to join our board of directors, effective immediately,” he said. “They bring a wealth of expertise from their diverse backgrounds that we are sure will make positive contributions to the company's success."
In its financial earnings statement, the company still operated at a net loss—$31.1 million in 2011—compared to a net loss of $43.2 million last year. FriendFinder recorded a $10.2 million net loss for the fourth quarter.
“Revenue was negatively impacted by a decrease in traffic and a decline in new subscribers and renewal orders primarily in European markets,” the company reported. “The weakness in social networking revenue was partially offset by an increase in live interactive video and premium content.”
FFN is optimistic about the company’s financial outlook in 2012 investing in a number of initiatives in the first half of the year to drive revenue growth in the second half of the year. The company also took steps to reduce its overhead by $10 million annually.
In its statement, the company, which operates more than two dozen social network sites and Penthouse magazine, is “developing a new platform for casual dating sites that will allow for better control of real-time advertising, more segmented advertising and an improved client user interface.” It plans to release the new platform in its second quarter.
FFN expects to generatate between $340 to $350 million in revenue in 2012. This represents year-over-year revenue growth of 2.6 to 5.6 percent.
Pictured: Marc Bell with 2011 Penthouse Pet of the Year Nikki Benz.
