Barry Diller's IAC Posts Strong Second-Quarter Financial Growth
The online firm posted mixed results for its media segment that now includes a majority stake in Newsweek Daily Beast, for which IAC took an $18.6 million charge.
Barry Diller's Internet company IAC on Wednesday reported improved second-quarter financials that exceeded Wall Street expectations and said it would double its dividend.
IAC's overall revenue of $680.6 million rose 40 percent, with adjusted earnings of $81.3 million showing a 29 percent improvement. That beat Wall Street expectations. The firm's operating income before amortization jumped 48 percent to $123.7 million.
The company also detailed mixed financials of its media business, which includes content producers Electus, CollegeHumor and Notional, online video platform Vimeo and the Newsweek Daily Beast joint venture, in which IAC said it acquired a controlling stake in late May.
It didn't detail the size of its stake, but took an $18.6 million pre-tax charge to write down the value of the venture. The Harman family has seen its stake in the venture diluted by its decision to limit its funding contributions to the loss-making business following last year's death of Sidney Harman who had struck the partnership with Diller.
Media revenue rose 97 percent to $38.4 million due to the contribution of now-consolidated Newsweek Daily Beast and growth at Electus and Vimeo.
But the media segment also posted a higher operating loss before amortization of $6.8 million, compared with the year-ago loss of $3.3 million. They also reflect the inclusion of Newsweek Daily Beast and increased operating expenses at CollegeHumor.
IAC on Wednesday also said it is doubling its dividend to 24 cents per share.