IAC Posts A Better-Than-Expected Jump In Sales

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Credit: IAC

IAC (NSDQ: IACI) once again posted a better-than-expected jump in quarterly revenue, as the company benefited from double-digit sales growth at all of its units. IAC said revenue increased 25 percent to $421.7 million, while earnings per share came in at 32 cents. On average, analysts had expected revenue of $399 million and earnings per share of 27 cents.

Match, IAC’s personals unit, performed particularly well during the quarter, reporting a 31 percent increase in sales and 47 percent increase in net income. That was a turnaround from last quarter, when Match was IAC’s only unit to post a drop in revenue. IAC attributed the increases at Match in part to double-digit growth in the number of subscribers to its various dating sites — even when additions generated from some of its recent acquisitions were subtracted.

There was strength across-the-board. Ask.com, the company’s long-stagnant search business, for instance, said it had benefited from growth in the number of search queries, particularly through its toolbars. And the company’s “media and other” category, which includes Electus and the Daily Beast, posted a 44 percent increase in sales. It remained, however, IAC’s only operating unit to post a loss.

We’ll have additional details on the company’s quarterly performance from its earnings call this morning. When CEO Barry Diller made a public presentation in late September he was notably glum on the future of the Ask.com business, saying it was “miraculous” that the search engine had maintained its share of the search market for so long and musing whether the site’s new strategy would work. We’ll be listening for updates and will post them here.

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If you carefully check Alexa’s Traffic Rank and Bounce for Match you will discover they are desperately buying traffic.

The IAC had acquired SinglesNet and YahooPersonals unit this year,
so the new IAC Q3 2010 says “Match” had nearly 1,818,000 paid subscribers but it really means [Match + Chemistry + NetClubEncuentro + Udate + PeopleMedia communities + SinglesNet + YahooPersonals].

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