IAC Reports Improved Revenue Shrinking Profits

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IAC Reports Improved Revenue, Shrinking Profits

By: Nathan Weinberg
2008-02-07

InterActive Corp, the parent company of Ask.com, reported earnings today, despite warnings that the legal battle between Barry Diller and John Malone would make things difficult.

The company went from a profit of $15.3 million a year ago to a loss of $369.9 million this quarter, underscoring the need for change at the company. Whether that change involves splitting into five divisions or getting rid of Diller, the courts may have to decide.

Revenue was up 8% to $1.86 billion, and that loss was the fault of a $475.7 million impairment charge on LendingTree, thanks to the failing housing market. The division that includes Ask.com reported impressive growth of 42% in revenue, to $226 million, and 55% in profits to $31.2 million. Ask may not be a mammoth Google-level money printing machine, but it is a successful, profitable company with a bright future and healthy growth.

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About the Author:
Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

Visit the InsideGoogle blog.


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