By Roshan Fernandez
IAC's first quarter revenue fell with declines in Care.com and search sales partially offset by a slight uptick in Dotdash Meredith revenue.
The New York City-based media and internet holding company reported a first-quarter loss of $216.8 million, or $2.64 a share, compared with a profit of $45 million, or 51 cents a share, a year earlier.
IAC said the quarter's loss reflected a $324.3 million unrealized loss tied to its ownership of 64.7 million shares in casino resort operator MGM Resorts International, which was worth about $2.1 billion as of May 2. IAC paid about $1.3 billion for the stake.
Revenue fell to $570.5 million from $624.3 million a year earlier.
The media company also completed its spinoff of home-services company Angi, which it has previously said was to allow it to grow other businesses in its portfolio.
Sales at Dotdash Meredith, the company's largest business and publisher, grew 1% compared to a year earlier. That stemmed from higher premium advertising revenue in the technology, retail and beauty categories, and was partially offset by lower impression volumes.
IAC Chairman Barry Diller said the division's scale, loyal audience and advertising performance "continue to differentiate it from the industry and underscore its growth potential."
Print revenue at Dotdash Meredith declined 7% as audiences and advertising budgets continue to migrate toward digital platforms. Digital revenue there grew 7% during the quarter.
Overall search and Care.com revenue fell 35% and 4% respectively compared to the year-ago quarter, the company said.
The media company said expenses related to former CEO Joey Levin's departure, as well as severance and related expenses to headcount reduction, were included in this quarter.
For the full-year, the company reiterated its guidance across its business. It expects adjusted earnings before income, taxes, depreciation and amortization will be between $240 million and $295 million, which accounts for the Angi spin-off.
The company expects 10% digital revenue growth for 2025 at Dotdash Meredith given the current volatility in the macroeconomic climate.
IAC said it repurchased 4.5 million shares between February 12 and May 2. It also approved the repurchase of 10 million shares, of which 9.2 million still remain as of May 2.
Write to Roshan Fernandez at roshan.fernandez@wsj.com
(END) Dow Jones Newswires
May 05, 2025 16:09 ET (20:09 GMT)
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