IAC/InterActiveCorp reported that its second-quarter net income plunged more than 91 percent, despite high-performing online properties, but investors found adjusted income gains for the quarter encouraging.
For the quarter ended June 30, InterActiveCorp's net income fell to $53.8 million, or 17 cents a share, from $618.1 million, or $1.77 a share, in the year-ago period, writes MarketWatch. Revenue increased 18 percent to $1.6 billion. The year-ago profits included more than $400 million in after-tax gains from the sale of properties and a $62.8 million tax benefit. Second-quarter adjusted income gains were 12 percent year over year - $108 million, or 32 cents a share, versus $96.6 million, or 28 cents a share.
Ask.com was a bright spot for IAC, having climbed from fifth place in search market share to fourth, unseating AOL, according MarketWatch. IAC's Search and Media segment, which includes Ask.com and Citysearch, increased revenue 21 percent over the year-ago period, due largely to growth at Ask.com in the U.S., though hampered by weakness at Ask.com in the U.K., writes ClickZ.
Integration of Ask.com in other IAC online properties - as a first step including Ask's search box on all sites - has increased Ask's search volume. Queries in the quarter increased more than 40 percent, and revenue per query improved more than 10 percent, from a year ago. Citysearch's unique monthly users increased to 21 million in June, and it's adding local merchants to its pay-for-performance program, which had reached 50,000 by the end of the quarter, according to ClickZ.