IAC Falls as Aereo Writedown Leads to First Loss in 4 YrsAlex Barinka
IAC/InterActiveCorp fell after reporting its first quarterly loss in more than four years as the company wrote down its investment in Internet-TV startup Aereo Inc.
IAC swung to a second-quarter net loss of $18 million, the New York-based company said today in a statement. Earnings, excluding some items, of 4 cents a share included a $68.4 million writedown on five investments that reduced adjusted profit by 75 cents a share. Analysts were expecting adjusted earnings of 79 cents on average, according to data compiled by Bloomberg.
The company, which is led by billionaire chairman Barry Diller, said the largest portion of the writedown was for its stake in Aereo, which lost a copyright infringement case at the U.S. Supreme Court last month. The online-TV service has since halted operations. A change in Google Inc.’s Chrome Web browser also hurt results as revenue from IAC’s applications business fell 15 percent.
IAC dropped 2.2 percent to $65.29 at 10:40 a.m. New York time. The stock earlier fell as much as 5.6 percent, the biggest intraday decline since Feb. 5. The stock had fallen 2.8 percent this year through yesterday.
The company also increased its quarterly cash dividend more than 40 percent to 34 cents a share.