Earnings: IAC Income Slips, But Beats Estimates; Growth Moderates At 'New IAC'
This story was written by Joseph Weisenthal.
As it gets set to break into five parts, IAC (NSDQ: IACI) has announced Q2 revenue of $1.59 billion, a 7 percent increase from a year ago. Adjusted net income slipped 2 percent to $101.3 million ($.35 per share) from $103.7 million ($.34 per share) in the year ago quarter. This still beat EPS estimates, however, that called for $.31 per share.
-- New IAC: New IAC reported 11 percent revenue growth to $354.4 million, which is behind the 22 percent growth reported in Q1. It's also behind estimates we'd seen, calling for 13 percent revenue growth in the unit. A contributing factor to the declining growth was a change in revenue mix to higher margin advertisingthe company had warned about this previously. Media & Advertising revenue only grew by 7 percent in the quarter to $186.3 million, whereas last quarter that line was up 28 percent to $215.5 million. Match's growth slowed to 8 percent from 10 percent last quarter. The emerging businesses categor continues to perform well, growing 40 percent since last year, though again, down from 54 percent in Q1. Total operating profit for the unit stood at $29.8 million, a slight dip from Q1.
-- The spins: As for the other units, it's a pretty mixed bag. HSN was up 2 percent to $695.8 million, while LendingTree revenue was crushed, falling 47 percent to $60 million. On the bright side, Ticketmaster grew 30 percent to $382.4 million, and Interval was up 20 percent to $103.2 million. HSN, Ticketmaster and Interval were all on the strong side of forecasts, making up, somewhat, for the uninspired growth at New IAC.
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By Joseph Weisenthal