IAC posts 4Q loss

by David Evans on February 16, 2005 in Finance

IAC/InterActiveCorp, an online travel and retailing company, swung to a net loss of $46 million in the fourth quarter as the company recorded charges to write down the value of two of its businesses. The New York-based company, which is run by the former entertainment mogul Barry Diller, earned $153 million in the same quarter a year ago. On a per-share basis, the net loss in the fourth quarter was equivalent to 7 cents versus the year-ago profits of 20 cents. Without the charges, the company, which owns Expedia, Home Shopping Network, Hotels.com and Match.com, had earnings of $250 million, up 10 percent from $228 million a year ago. Per-share earnings rose to 33 cents, up from 29 cents a year ago and beating analysts expectations of 27 cents, as reported by Thomson First Call. Two charges weighed down the company’s results in the fourth quarter: a $185 million write-down of the value of its call center services business, which lost two key clients amid an increasingly competitive business climate; and a $33 million write-down in the value of a travel channel in the United Kingdom.

Word on the street is that Match is shedding additional executives. Some are voluntary departures, others are not.

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