GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

IAC/INTERACTIVECORP Reports Operating Results (10-Q/A)

February 01, 2012 | About:
gurufocus

10qk

18 followers
IAC/INTERACTIVECORP (IACI) filed Amended Quarterly Report for the period ended 2011-09-30.

Iac/interactivecorp has a market cap of $3.53 billion; its shares were traded at around $43.07 with a P/E ratio of 37.1 and P/S ratio of 2.2. The dividend yield of Iac/interactivecorp stocks is 0.3%.

Highlight of Business Operations:

Revenue in 2011 increased $277.1 million from 2010 primarily as a result of revenue increases of $173.2 million from Search, $67.9 million from Match, $18.3 million from Media & Other and $17.3 million from ServiceMagic. The increases in revenue from these businesses are primarily due to the factors described above in the three month discussion. The revenue from Media & Other was also impacted by a decrease in revenue from The Daily Beast which, following the formation of The Newsweek/Daily Beast Company joint venture with Harman Newsweek on January 31, 2011, has been accounted for as an equity method investment and the inclusion in 2010 of revenue associated with profit participations related to our former interest in Reveille.

Operating Income Before Amortization increased 57% to $45.8 million, benefiting from lower general and administrative expense as a percentage of revenue, partially offset by an increase of $29.2 million in traffic acquisition costs, higher selling and marketing expense and an increase of $2.9 million in depreciation. General and administrative expense was flat compared to 2010; however as a percentage of revenue general and administrative expense decreased primarily due to operating expense leverage. The increase in traffic acquisition costs and selling and marketing expense are primarily due to an increase in revenue and advertising and promotional expenditures, respectively. The increase in advertising and promotional expenditures is primarily driven by increased online marketing related to our destination websites and new product launches at Mindspark since the year ago period. The increase in depreciation is primarily due to the write-off of $4.9 million in capitalized software costs associated with the planned exit from our direct sponsored listings business.

Operating Income Before Amortization increased 57% to $145.8 million, benefiting from a decrease of $2.7 million in depreciation and lower selling and marketing expense and general and administrative expense as a percentage of revenue, partially offset by increases of $82.8 million in traffic acquisition costs and $2.2 million in product development expense. The decrease in depreciation is due to the write-off of certain assets in the prior year period, as well as a decrease in depreciation in the current year period resulting from the write-off of certain capitalized software costs in the fourth quarter of 2010, partially offset by the write-off of $4.9 million in capitalized software costs described above in the three month discussion. As a percentage of revenue selling and marketing expense decreased primarily due to an increase in the proportion of revenue that results in the payment of

Revenue increased 23% to $360.4 million benefiting from growth within its Core and Developing operations and the contribution of Meetic as described above in the three month discussion. Core revenue increased 18% to $293.4 million driven by an increase in subscribers. Developing revenue increased 26% to $55.9 million driven primarily from the acquisition in 2011 of OkCupid, as well as from Match's venture with Meetic in Latin America, which was not reflected in the full prior year period. Excluding the results of Meetic, revenue grew 19% to $349.3 million. Revenue in the prior year

Revenue increased 12% to $157.5 million, driven primarily by the factors described above in the three month discussion. Domestically, revenue growth reflects a 9% increase in accepted service requests, which was driven, in part, by a 7% increase in service requests. Domestic growth also reflects an increase in revenue from website design and hosting services. ServiceMagic's international revenue growth reflects a 65% increase in accepted service requests, which was driven, in part, by a 63% increase in service requests.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 5.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK