Barry Diller's IAC Swings to $18.1 Million First-Quarter Profit
NEW YORK – Barry Diller’s IAC swung to a first-quarter profit as revenue jumped 22 percent.
The Internet company, which includes Ben Silverman’s multi-media studio Electus, CollegeHumor and production firm Notional and owns half of the Newsweek Daily Beast Company joint venture, among others, reported a profit of $18.1 million. That compared with a year-ago loss of $18.7 million.
The year-ago result was also dragged down by an impairment charge related to an investment. Revenue rose 22 percent to $460.2 million.
Chairman Diller, a former movie studio boss, has in recent years expanded the company's media and entertainment activities.
IAC’s “media and other” segment, which includes Electus, CollegeHumor, Newsweek Daily Beast and more, grew revenue 13 percent to $54.3 million, with the company citing Electus and Notional as contributors to the gain. The unit’s operating loss narrowed slightly from $3.8 million to $3.7 million. IAC mentioned a narrowed loss at what is now Newsweek Daily Beast as a key reason.
On a conference call, Diller said he expects the value of a recent five-year extension of a search deal with Google to be $5.5 billion, compared with $3.5 billion in estimated revenue for the original deal. "It's obviously significant," he said.
Asked about the outlook for possible future synergies at Newsweek Daily Beast, Diller said it is still early in the process and pointed out that the Daily Beast site already helps sell the Newsweek print product. He added that there may not be much to say about the integration, which is still underway, for at least six months.