IAC beats quarterly revenue estimate on digital media strength (updated)
11/02/2025 21:42
(Rewrites paragraphs 1,2, adds share movement)
By Harshita Mary Varghese
Feb 11 (Reuters) - IAC IAC.O beat analysts' estimate
for fourth-quarter revenue on Tuesday, thanks to continued
growth at its biggest business, sending the internet holding
company's shares up more than 3% in extended trading.
The company, however, forecast its annual adjusted core
profit below estimates.
Core profit for 2025 will be impacted by several
non-recurring expenses, including costs related to the spin-off
of its home services marketplace Angi ANGI.O and departure of
CEO Joey Levin following the unit's separation, it said.
IAC has "large one-time costs on a forward basis associated
with the separation agreement with Levin," Chief Financial
Officer Christopher Halpin told Reuters in an interview.
"We are booking a six-year $3 million consulting contract
with him (Levin) on a forward basis, all upfront," Halpin said.
IAC expects its adjusted earnings before interest, taxes,
depreciation and amortization to be between $345 million and
$425 million for 2025, compared with analysts' average estimate
of $438.7 million, according to data compiled by LSEG.
Its total revenue of $989.3 million for the fourth quarter
beat the estimate of $934.4 million.
Dotdash Meredith, IAC's biggest business which owns and
operates top brands such as the Food & Wine magazine and
Investopedia, saw its digital revenue grow 10% to $311 million —
marking its fourth consecutive quarter of double-digit growth.
Angi's revenue fell 11% to $267.9 million during the
quarter, as it continues to see fewer service requests and lower
acquisition of new professionals.
"Revenue declines (at Angi) will lessen or sequentially
improve every quarter this year, and we expect to get back to
revenue growth by 2026," Halpin said.
Angi's spin-off is expected to close in the first half of
2025.
(Reporting by Harshita Mary Varghese in Bengaluru; additional
reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi
Majumdar)
((HarshitaMary.Varghese@thomsonreuters.com))