IAC Profits, Revenues Surge; Cites Reduced Losses At Daily Beast

IAC (NSDQ: IACI) turned in another solid quarter as revenues from search, dating site Match and local home improvement site ServiceMagic all rose in double digits. Even the media segment, which absorbed Newsweek as part of a joint venture with The Daily Beast during the early part of the quarter, was up 13 percent as the Tina Brown venture was able to reduce its unspecified losses.

It’s been estimated that, Newsweek lost roughly $40 million over the past two years, while the two-year-old The Daily Beast lost about $10 million last year. The company didn’t say what the unit’s losses were in Q1. Earlier, Stephen Colvin told the NY Post that that this year’s losses will be down more than 60 percent from 2010.

The positive news about reduced losses comes a few weeks after the death of Sidney Harman, who had bought Newsweek last fall and eventually entered a partnership with IAC that would merge the magazine with The Daily Beast. Just before Harman’s death at 92, Newsweek Daily Beast Co., as the joint venture is named, hired Daniel Blackman, a former strategic partner development officer at Google (NSDQ: GOOG) from 2005 to 2007 and was more recently co-founder and chief operating officer of Howcast. Blackman will be working on creating a single site, with Newsweek.com folded into The Daily Beast.

As for its search unit, IAC said that revenue growth was driven by Mindspark’s B2B and proprietary operations as well as continued improvements from destination websites and at local guide unit CityGrid Media, though not much mention was made of IAC’s best known search property Ask.com.

Nevertheless, while things appear to be moving in the right direction in terms of revenues and losses, total expenses rose 15 percent as well.