IAC's profit beats as revenue rises from dating websites

Reuters News
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Posted: Apr 28, 2015 5:06 PM

(Reuters) - Media mogul Barry Diller's IAC/InterActiveCorp reported a better-than-expected quarterly profit, helped by higher subscription revenue from its dating websites.

Shares of IAC, which also owns video sharing service Vimeo and popular dating app Tinder, rose 2 percent in extended trading on Tuesday.

Revenue from IAC's dating websites, including Match.com and OurTime.com, rose 2 percent in the first quarter as the number of paid subscribers across websites surged 16 percent.

The company said dating revenue rose 8 percent excluding the negative impact of a strong dollar.

IAC said it expected current-quarter dating revenue to rise in high single digit in percentage terms.

However, revenue from IAC's search and applications business, which includes Dictionary.com, Investopedia.com and Ask.com, fell 3.8 percent.

The business accounts for about half of IAC's total revenue.

IAC's net income attributable to shareholders fell to $26.4 million, or 30 cents per share, in the quarter ended March 31 from $35.9 million, or 41 cents per share, a year earlier.

Excluding items, the company earned 43 cents per share.

Revenue rose about 4 percent to $772.5 million.

Analysts on average had expected a profit of 35 cents per share and revenue of $772.3 million, according to Thomson Reuters I/B/E/S.

IAC's shares were trading at $72.80 after the bell.

(Reporting by Sai Sachin R in Bengaluru; Editing by Kirti Pandey)