Barry Bombs: IACI Revenue OK, Profit Weak

IAC’s revenue was in line with expectations, but EBITA fell short–primarily due to more ghastly news at Lending Tree. Release:

Online Business Details (ex Lending Tree):

  • Media and Advertising revenue (primarily Ask, Evite, and Citysearch) was good: up 42% Y/Y, a modest acceleration from 40% growth in Q3.
  • Media and Advertising EBITA grew a less impressive 32%, after adjusting for a one-time capitalised software accounting change.
  • revenue grew 14%, driven by international subscriber growth (US sub growth was only up 1%), but operating income was flat as a result of increased marketing expenses (which make the revenue growth largely irrelevant.

Overall, the “New IAC”–the company that will be left over after IAC spins everything else off (Malone permitting)–grew revenue a respectable 21% in the quarter, but operating income before amortization dropped 19%. “New IAC” shareholders aren’t going to go bananas about that.

“Yes, the quarter blew.  Just don’t talk to me about that nutcase Malone.”

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