IAC breakup causes quarterly loss

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.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety