DOW JONES NEWSWIRES
IAC/InteractiveCorp. (IACI) reversed a year-earlier loss caused
by write-downs in the third-quarter and the parent of properties
including Ask.com and Match.com reported better-than-expected
results.
IAC, which split into five separate companies just over a year
ago to slim down its sprawling conglomerate, has swung to a profit
in three of the past four quarters as it moves away from the major
restructuring, although revenue has been falling amid a weak
advertising environment.
The company posted earnings of $21.3 million, or 16 cents a
share, compared with a year-earlier loss of $15.2 million, or 11
cents a share. The latest results included $35 million in gains
tied to the sale of OpenTable Inc. (OPEN) stock and the sale of
Match Europe, while year-earlier results included expenses tied to
the company's breakup. Excluding items earnings were 34 cents a
share compared with a year-ago loss of 14 cents.
Revenue decreased 8.9% to $336.6 million.
Analysts surveyed by Thomson Reuters projected earnings of 13
cents a share on revenue of $335 million.
Earnings before amortization in the media and advertising
segment, which includes Ask.com, fell 30% amid higher traffic
acquisition costs and an 11% drop in revenue.
The Match unit, known for Match.com and Chemistry.com dating
services, posted a 12% profit decline as revenue fell 13%.
Excluding Match Europe and PeopleMedia, revenue grew 5% during the
quarter driven by a 9% increase in U.S. subscribers.
Shares were up 5 cents to $19.40 in premarket trading. The stock
is up about one quarter this year.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com