IAC/InterActiveCorp Q4 Profit Surges On Lower Costs, Revenue Down

(RTTNews) - IAC/InterActiveCorp. (IACI) Wednesday reported a sharp increase in fourth-quarter profit, reflecting lower costs and expenses. However, quarterly revenues declined 5 percent and missed analysts' consensus estimates.

For the fourth quarter, the media and Internet company's net income attributable to shareholders surged to $76.92 million or $0.88 per share from $40.74 million or $0.43 per share in the prior year.

On an adjusted basis, earnings for the recent quarter were $1.04 per share, while the firm posted $0.70 per share in the same quarter last year. On average, 17 analysts polled by Thomson Reuters expected the company to earn $0.91 for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined 5 percent to $724.46 million from $765.25 million last year, which also came below analysts' estimate of $743.67 million.

Revenues from Search & Applications segment were $373 million, down 8 percent from the previous year. According to the company, Websites revenue decreased mainly due to lower average revenue per query, which more than offset strong query growth at Ask.com.

Applications revenue also decreased due to lower average revenue per query and decreased queries in its partnership operations, B2B business.

The company's Search & Applications segment operates Websites to provide search services and content, such as Ask.com, About.com, and Dictionary.com, and develops, markets, and distributes various downloadable applications.

The company's total costs and expenses during the period fell to $611.50 million from $679.96 million a year earlier.

The board also declared a quarterly cash dividend of $0.24 per share, to stockholders on record February 15, payable on March 1, 2014.

IACI closed Tuesday's regular trading at $68.85 on the Nasdaq. In the pre-market activity on Wednesday, the shares are down 5.58 percent.