for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

IAC points to slowing growth in homeservices, shares fall

(Reuters) - IAC/InterActiveCorp said on Monday sales growth in its homeservices unit slowed last month after jumping in May and June, and warned of extended volatility in monthly results due to the COVID-19 pandemic, sending its shares down 3% aftermarket.

The unit, ANGI Homeservices, has emerged as IAC’s largest segment after the digital media company spun off its entire stake in its online dating business Match Group Inc.

“As the global pandemic continues to change consumer and business behavior in ways none of us can truly predict, the volatility of our monthly results will continue and this July is no different,” the company said in a letter to shareholders.

Television mogul Barry Diller-owned IAC said revenue at ANGI increased 7% in July, after gaining 15% and 14% in May and June, respectively.

To be sure, the July growth might not end up materially affecting IAC’s final third-quarter results. The company only recently started breaking out monthly numbers after abandoning the practice of providing a forecast.

Highlighting the volatility, demand for ANGI’s services had dropped considerably in March as people shelved plans to renovate their houses due to the pandemic.

Revenue at ANGI, which lets users hire service professionals for jobs such as cleaning, repairing and landscaping, rose 9% to $375.1 million in the second quarter, beating estimates of $347 million, according to Refinitiv IBES data.

Overall revenue at IAC rose 5.5% to $726.4 million for the quarter ended June 30, also benefiting from strong demand for video platform Vimeo during lockdowns.

Earlier in the day, IAC said it bought a 12% stake in casino operator MGM Resorts International for about $1 billion, primarily attracted to its online gaming business.

Reporting by Ayanti Bera in Bengaluru; Editing by Devika Syamnath and Sriraj Kalluvila

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up