IAC Video Unit Loss Narrows, Vimeo Hits 697,000 Paying Subs

Barry Diller - H 2015
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Media mogul Barry Diller is the chairman of the internet company.

IAC, the internet company controlled by media mogul and chairman Barry Diller, on Wednesday reported slightly lower adjusted first-quarter earnings and a narrowed loss at its video unit.

IAC's video unit, which includes such assets as online video site Vimeo, Electus and Daily Burn, recorded an adjusted loss before interest, depreciation and amortization of $16.9 million in the quarter, a 14 percent improvement from the year-ago loss of $19.7 million. The operating loss at the unit narrowed by 15 percent to $17.5 million. The company cited a profit at IAC Films and an increased profit at Electus as driving the unit's improved results.

Video unit revenue increased 19 percent in the first quarter to $55.1 million, driven by "strong growth at Electus, Vimeo and Daily Burn, partially offset by $4.5 million lower revenue from IAC Films as the prior year benefited from the release of While We're Young," the company said.

Vimeo ended the quarter with 697,000 paying subscribers, up 16 percent.

Overall, IAC reported earnings of $8.3 million, or 9 cents per share, compared with $26.4 million, or 30 cents per share, in the year-ago period. The results benefited from a $13.3 million after-tax gain related to the sale of PriceRunner, which boosted earnings by 16 cents a share. Adjusted earnings dropped 6 percent from $38.4 million to $36.1 million. Adjusted earnings per share declined from 43 cents to 42 cents.

Operating income dropped 39 percent to $21.4 million, while revenue rose 6 percent to $819.2 million.