Barry Diller’s about-to-be-broken-up IAC’s Q1 meets the Street’s modest expectations: Revenues are up 8%, to $1.6 billion (vs. $1.5B consensus) and adjusted EPS was 30 cents, which is where the Street had predicted it would fall. Operating income was down 4%, to $135 million; Barry and co blamed the decrease on “a difficult macro environment on our catalogues business, profit declines at Ticketmaster, and transaction expenses in connection with our planned spin-offs.”
Most interesting to us is IAC’s breakout of the 5 companies it imagines it will be, post break-up.(It’s still trying to give one of those companies — HSN — to Liberty Media so it can complete its messy divorce with John Malone). “New IAC” is the one most SAI readers will want to track — it consists of Ask and Barry’s other “pure play” Web businesses:
Revenue: $392 million, up 22% y/y
Operating Income: Loss of $33.3 million, a 15% y/y improvement
Revenue at the “New IAC”‘s biggest unit — its media group — grew 28%, primarily due to a renewed Google (GOOG) deal which resulted in an increase in revenue per query across all proprietary search sites”. A nice bonus: Though Ask’s queries continue to decline — the company says it’s because it’s advertising less, not because Google is crushing all competitors — “Revenue and revenue per query at Ask.com grew strongly, even excluding the benefits of the renewed contract.”
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