IAC profit squeeze
November 1, 2007
IAC reported a 4.2 per cent drop in third-quarter net income amid higher costs as home-shopping channel HSN showed signs of a turnaround. IAC reported net income of $71.8 million, compared with $74.9 million, a year earlier. The latest quarter’s results included a $5.9 million gain related to the sale of Home Shopping Network Europe earlier this year and a $2.7 million gain due to derivatives revaluation.
Revenue increased 7.4 per cent to $1.52 billion. Chairman and Chief Executive Barry Diller said. “Trends at our businesses are good, and particularly so at HSNâ€¦ beginning to demonstrate the great retailing smarts that we knew they were capable of.”
Part of the group, LendingTree, an online loan facilitator, swung to a loss on a 41 per cent slump in revenue amid fewer loans sold and closed. Loan-loss provisions soared to $8.2 million from $700,000.