10% revenue gain raises shares by 3%
A $20.8 million charge related to the breakup of IAC/InterActive Corp. into five operating units sent Barry Diller’s Netco to a quarterly loss of $14.8 million for the quarter.
But a better-than-expected 10% gain in revenue to $369.3 million helped shares rise more than 3% to $17.14 on a tough day in the markets.
In the year-ago quarter, IAC posted a profit of $70.5 million. Despite the loss, Diller said it had been worth the struggle to spin off four units to create the five-pronged structure — a move that prompted a headline-grabbing legal feud with major shareholder John Malone.
Like traditional media congloms, IAC faces a brutal ad climate. Its media and advertising spending climbed only 2% from the year-ago period to $193.3 million.
IAC operates sites like Ask.com, Match.com and Tina Brown’s news site The Daily Beast.