Media conglomerate IAC forecasts gloomy start to 2014, shares fall
Oct 29 (Reuters) - Barry Diller's IAC/InterActivecorp forecast a gloomy start to 2014 and missed analysts' third-quarter estimates, sending shares down as much as 13 percent after the bell on Tuesday.
The U.S. media and entertainment company, whose clutch of websites includes Ask.com, Dictionary.com and About.com, forecast a "flattish" first-quarter margin at its search and applications business that accounts for more than half of overall revenue.
The business, which bought About.com from The New York Times Co in 2012, is also expected to report a mid-single digit decline in fourth-quarter revenue, Chief Financial Officer Jeff Kip said in a post-earnings conference call.
He blamed the hit on weaker websites' revenue as third-quarter cost-per-click changes are set to take effect.
IAC shares trading down at $50.40 in post-market trading.
Quarterly revenue rose 6 percent to $756.9 million, missing analysts' expectations of $804.5 million, according to Thomson Reuters I/B/E/S.
Adjusted earnings rose 82 percent to $1.29 per share in the three months ended Sept. 30, beating analysts' expectations of 95 cents.
Launched by Diller in 1995, IAC is a backer of controversial startup Aereo and also owns video-sharing website Vimeo.com, and a number of dating sites including Match.com.
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