IAC/InterActive Q3 Profit Surges

(RTTNews) - IAC/InterActiveCorp. (IACI) Wednesday reported a sharp increase in the third-quarter profit, reflecting higher revenues and a tax-related benefit. The media and Internet company's revenues grew 3 percent, with solid growth at Match Group and strong growth at Vimeo and HomeAdvisor. The shares rose more than 5 percent in pre-market trading.

For the quarter, net earnings attributable to IAC shareholders surged to $326.81 million or $3.68 per share from $96.94 million or $1.13 per share in the previous year. Earnings from continuing operations were $1.70 per share, compared to $1.08 per share last year.

Adjusted earnings totaled $0.92 per share for the quarter, while the company posted $1.29 per share in the prior year.

On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.66 for the quarter. Analysts' estimates typically exclude special items.

According to IAC, net Income and adjusted net Income in the recent quartet reflect a benefit of $263.9 million and $12.8 million respectively, due to reduction in tax reserves related to expiration of the statutes of limitations for federal income taxes for the years 2001 through 2009.

These benefits positively impacted reported and adjusted earnings per share by $2.97 and $0.14, respectively.

Earnings from discontinued operations were $175.73 million, significantly up from $3.91 million last year.

Revenues for the quarter grew 3 percent to $782.23 million from $756.87 million in the prior year. Analysts expected revenue of $751.69 million for the quarter.

The company said the increase in revenues was driven by solid growth at the Match Group and strong growth at Vimeo and HomeAdvisor, partially offset by a modest decline at Search & Applications.

Match Group revenue climbed 12 percent from last year. In the Media segment, Vimeo grew revenue over 30 percent and surpassed 530,000 paid subscribers.

In the eCommerce segment, HomeAdvisor revenue climbed 20 percent, with 17 percent rise in domestic service requests.

Total operating costs and expenses advanced to $681.28 million from $634.87 million a year ago.

IAC also declared a quarterly cash dividend of $0.34 per share, to stockholders of record on November 15, 2014, payable on December 1.

IACI closed Tuesday's trading at $65.16, up 3.46 percent. In the pre-market activity on Wednesday, the shares are up 5.42 percent.