Barry Diller’s patience at IAC/Interactive is starting to pay off in the earnings, even if the stock market continues the cold shoulder. Revenues were up 14 percent in 1Q05 to $1.6 billion from $1.4 billion the previous year and operating income rose 226 percent — yes, you read that right — to $128 million from $39 million. Net income hit $69 million, up 80 percent, while operating income rose 30 percent, $253 million over $194 million in 1Q04.
From the fine print:
– Continuing our theme of internet sites outpacing their traditional sibs, HSN US revenues grew by 6 percent compared to 24 percent for HSN.com. Of course, they have more growing to do but still …
– Revenue at IAC LOcal and Media Services was up 29 percent to $41.2 million pushed by the acquisition of ServiceMagic a better showing from CitySearch, where revenue grew 50 percent thanks to pay-for-performance.
The results didn’t stop the buzzing around what TheStreet.com’s Kevin Kelleher calls “Barry Diller’s online strip mall of e-commerce shops.” During the earnings call, Diller pointed out, “We’re consistently hitting dozens of key markers we track every which way.” But that’s not enough for Kelleher: “While many of the companies he’s assembled have flourished, the synergy that was supposed to turn IAC into a transcendent e-commerce giant that would rival Amazon.com has yet to gel.”
Ask Jeeves is supposed to help by sending traffic across the conglomeration, a central point in a company that now lacks a hub. Diller said the company isn’t looking for more search acquisitions.
Earnings release | Webcast | AskJ/IACI Archive
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