Internet conglomerate IAC/InterActiveCorp posted disappointing quarterly results Tuesday on lower revenue at its key HSN shopping channel and unexpected weakness at its Ticketmaster boxoffice service, sending shares down 5.3% to $28.74. IAC, controlled by CEO Barry Diller, said second-quarter profit rose 78% to $96 million, but earnings excluding special items were below Wall Street expectations. Diller described the company's growth as "temporarily stalled."
RealNetworks Inc. posted a decline in quarterly profit Tuesday after the digital media company could not match year-ago results that were boosted by a legal settlement with Microsoft Corp. Second-quarter net income was $1.3 million, compared with $38.9 million a year ago. In the year-ago quarter, the company benefited from the proceeds of a $57.9 million settlement of litigation against Microsoft and commercial agreements with the world's largest software maker. Revenue rose 5% to $136.2 million, helped by a strong performance from its games and digital music subscription business.
Apple shares sunk 6.8% on Tuesday to $131.76 on speculation that it might cut production of either the iPhone or iPod. But while a Miller Tabak report led to the speculation, citing talk among traders, other analysts dismissed the information as unfound rumor. Separately, Apple said Tuesday that it sold its 3 billionth song since launching iTunes four years ago. The company sold its 2 billionth song six months ago.