Barry Diller's IAC Posts Stronger Third-Quarter Results
Barry Diller's IAC on Thursday reported much-improved third-quarter financials that exceeded Wall Street expectations and said it would start paying a quarterly dividend.
The Internet company posted earnings of $65.0 million, compared with $17.5 million in the year-ago period. Revenue rose 25 percent to $516.9 million.
The company said it is introducing a 12 cents per share quarterly dividend. “I think it’s an outdated and somewhat inane concept that high-growth companies shouldn’t pay dividends,” said IAC chairman Diller. “We’ve been growing our earnings consistently, have substantially no debt, and large reserves of cash."
IAC's media & other unit, which includes Ben Silverman's next-generation production outfit Electus, CollegeHumor, Notional, as well as Vimeo, Pronto, Shoebuy, Proust and Hatch Labs, reported a quarterly revenue gain of 4 percent to $56.4 million driven by growth at Electus, CollegeHumor and others. Its loss expanded from $2.8 million to $3.7 million reflecting higher operating expenses at Electus and other factors. The year-ago operating included losses related to The Daily Beast, which, following the formation of a joint venture with Harman Newsweek in January, IAC now accounts for as an equity investment.