May 6, 2020 / 8:23 PM / 20 days ago

IAC revenue rises as home-bound take to online dating, video streaming

(Reuters) - IAC/InterActiveCorp reported an 11% rise in quarterly revenue on Wednesday, as its online dating business and video hosting platform added more stuck-at-home users.

Surge in users in these units partially offset a drop in demand in its homeservices platform ANGI, which reported quarterly revenue of $343.6 million, missing estimates of $345.8 million, according to IBES data from Refinitiv.

IAC flagged last month that demand for ANGI’s services had dropped considerably as people were shelving plans to renovate their houses amid the COVID-19 pandemic.

The company, which pulled its full-year forecast in late April, expects second quarter to be tougher, Chief Executive Officer Joey Levin said in a letter to shareholders.

However, it had also signaled a spike in demand for Vimeo’s video tools in the quarter as more people shift to working and learning remotely. Revenue at this unit rose 31% to $57 million, above estimates of $54.5 million.

Match Group, that forms nearly half of IAC’s revenue, reported a 17% rise in revenue and said user engagement across its dating apps had surged as people look to make virtual connections amid the pandemic.

IAC is in the process of spinning off its ownership stake in Match Group resulting in the full separation of the two companies.

Revenue for the digital media company rose 11% to $1.23 billion, marginally above analysts’ estimates of $1.20 billion, according to IBES data from Refinitiv.

Net loss attributable to IAC was $211 million, or $2.49 per share, for the quarter ended March 31, compared with a profit of $88.7 million, or 91 cents per share, a year earlier.

The company booked a goodwill impairment charge of $212 million in the quarter related to the impact of the pandemic on its Desktop business.

Reporting by Ayanti Bera in Bengaluru; Editing by Shailesh Kuber

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