* Adjusted EPS 56 cents vs. Street view 49 cents
* Revenue rises 25 percent to $516.9 million
* Declares regular dividend of 12 cents
* Shares rise 5 pct
By Yinka Adegoke and Jennifer Saba
Nov 3 Barry Diller's IAC/InterActiveCorp reported a higher-than-expected third-quarter profit
and said it would pay its first regular dividend.
Shares of the Internet holding company, parent of dating
sites Match.com and Meetic, search engine Ask.com and media
site CollegeHumor, closed up 5 percent on Thursday.
IAC's net income rose to $65 million, or 69 cents per
share, from $17.5 million, or 16 cents per share, a year ago.
On an adjusted basis, profit was 56 cents per share,
beating the average Wall Street forecast of 49 cents, according
to Thomson Reuters I/B/E/S.
Revenue rose 25 percent to $516.9 million in the three
months ended Sept. 30.
IAC, which had a cash pile of $865 million at the end of
the quarter, said it would pay a quarterly cash dividend of 12
cents per share, amounting to about $9.8 million.
"I think it's an outdated and somewhat inane concept that
high-growth companies shouldn't pay dividends," Diller, IAC's
chairman, said in a statement.
The company plans to maintain a minimum of $500 million of
cash, Diller said during a call with analysts.
"Investors have increased comfort the company is not going
to go out and use the cash for a big splashy acquisition," said
BGC Partners analyst Colin Gillis.
"The businesses may not be the sexiest businesses out
there, they fit into Internet 1.0, but they throw off cash,"
Diller, the colorful media mogul who ran Paramount Pictures
and later Rupert Murdoch's Fox, is known for green-lighting hit
movies like "Saturday Night Fever" and commissioning "The
He stepped down as IAC's chief executive late last year
though he still serves as its chairman.
A consummate dealmaker, Diller was also instrumental in
forming a 50-50 joint venture with Newsweek, owned by the late
Sidney Harman, and IAC's Daily Beast website founded by Tina
When the partnership took shape at the end of January, IAC
started accounting for the Newsweek/Daily Beast Co as an equity
For the third quarter, the company reported equity in
losses of $15 million, which includes Newsweek/Daily Beast, an
$11.7 million loss related to the markdown of its original
Meetic stake, and other equity investments.
Coupled with the dividend, IAC has been buying back its
shares -- 42 percent over the last three years.
And even with the dividend, IAC is still in a position to
"We have plenty of resources to buy back stock and to make
any acquisitions we think we would be rational," Diller said on
Credit Suisse analyst John Blackledge welcomed the dividend
announcement as another shareholder-friendly capital allocation
decision by IAC.
"...Though the dividend yield at 1.2 percent is modest vs.
2 percent average dividend yield for S&P 500, it is a solid
start," he wrote in a client note.
IAC shares closed at $41.56.