Online ad improvement seen in IAC's 4Q loss

Feb 09, 2010 By RACHEL METZ , AP Technology Writer

(AP) -- Internet company IAC/InterActiveCorp lost $1 billion in the fourth quarter because it wrote down the value of its search business, but the results beat expectations and offered the latest indication that the online advertising market is improving.

IAC, which is run by media billionaire Barry Diller, said Tuesday its net loss amounted to $7.94 per share in the last three months of the year. This compares with a of $227.4 million, or $1.57 per share, in the year-ago quarter.

In the most recent quarter IAC took a $991.9 million impairment charge to account for decreased projections for revenue and profit growth at IAC's search properties, which include such Web sites as and

Excluding one-time items, the company earned 20 cents per share - 2 cents more than analysts polled by Thomson Reuters expected.

Revenue climbed 5 percent to $367.2 million, beating analyst expectations for $339.6 million.

Even as IAC wrote down the value of its search business, overall the company appeared to be reversing some downward trends.

Revenue from IAC's core search business, which includes the Ask search engine and online city guide Citysearch and makes money from ads, rose 3 percent to $185.4 million. Revenue had dropped in the first nine months of the year.

The turnaround is consistent with recent results from IAC's peers that signal that the online advertising market is improving. Online ad leader Inc. reported fourth-quarter ad revenue grew 17 percent. Yahoo Inc. reported a 4 percent drop and AOL Inc. an 8 percent drop, but those declines were less than those logged during the first three quarters of the year.

Revenue from IAC's media and other business, which includes entertainment site CollegeHumor and online retailer, climbed 6 percent to $63.5 million. IAC said the unit benefited from healthy holiday sales.

In IAC's Match business, which consists of dating sites like and, revenue dropped 6 percent to $83.3 million. IAC said the decline was due to absence of Match Europe, which was sold last June. Match's number of paid subscribers rose 3 percent from a year earlier to 1.4 million.

For the full year, IAC reported a loss of $978.8 million, or $7.06 per share, compared with a loss of $156.2 million, or $1.08 per share, in 2008.

Revenue declined 5 percent to $1.38 billion in 2009, from $1.45 billion a year earlier.

Explore further: China's Xiaomi raises more than $1 bn in funding

not rated yet
add to favorites email to friend print save as pdf

Related Stories

IAC reports 3Q profit but ad revenue still slips

Oct 27, 2009

(AP) -- IAC/InterActiveCorp, which runs, and other Web sites, said Tuesday that asset sales helped it profit in the third quarter while advertising revenue continued to slump.

IAC has 2Q profit; revenue falls in weak ad market

Jul 29, 2009

(AP) -- IAC/InterActiveCorp, the company behind such Internet properties as, Ask and Citysearch, posted a second-quarter profit that fell short of analyst expectations Wednesday and indicated the online ad market ...

IAC shares surge despite $28M quarterly loss (Update)

Apr 29, 2009

(AP) -- The recession took a bite out of IAC/InterActiveCorp in the first quarter, as revenue fell 22 percent in the Internet company's media and advertising unit, which includes the search engine.

Newly single AOL posts 4Q profit, despite ad drop

Feb 03, 2010

(AP) -- AOL Inc., newly released from its fizzled marriage with Time Warner Inc., reported a modest profit for the fourth quarter on Wednesday, even as revenue from online advertising continued to fall.

Holiday shopping, PayPal help eBay 4Q profit rise

Jan 20, 2010

(AP) -- EBay Inc. said Wednesday its fourth-quarter earnings climbed, bolstered by growth in its PayPal payments business and a holiday shopping season that was healthier than the year before. The company ...

Recommended for you

China's Xiaomi raises more than $1 bn in funding

16 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.