paidContent - Earnings: IAC Swings To Profit, But Weakness In Online Ads Remains

This story was written by David Kaplan.
Although IAC (NSDQ: IACI) swung to profit in Q2, with net income of $40.8 million ($0.28 cents per share) from last year’s loss of $422 million (-$3.02 per share), the company failed to meet analysts expectations. But the Barry Diller-owned company’s continued struggle with search, along with the still dismal online ad market in general, pushed the Media & Advertising unit, which includes, Fun Web Products, and Citysearch, down 10 percent to $168.6 million. In addition to query revenue being down at and Fun Web, CitySearch’s problems were attributed to a site relaunch in addition to the difficult display ad market, which has otherwise shown some signs of stabilizing. In all, IAC’s revenue picture in Q2 wasn’t all that dark. Revenues slipped 4 percent to $340 million during the period.

Not counting one-time charges, IAC earned $0.07 cents per share, missing the projections from analysts polled by Thomson Reuters (NSDQ: TRIN), who expected $0.09 cents per share, AP reported.

2Q 20092Q 2008Analysts Estimates For 2009
EPS $0.09   NA     $0.07  
Net Income $40.8M -$422M
Revenue $340M $354M $354M

Earnings release | Webcast (11:00 AM EDT)

By David Kaplan