Ask.com Revenue Outstrips Industry Estimates
Increased advertising revenues from Ask.com and the ongoing popularity of online dating domain Match.com have been major factors driving growth at US tech company InterActiveCorp. In its most recent statement of earnings IAC posted a twenty-five percent increase in sales over the previous quarter, nearly $25 million more than takings predicted by leading analysts at the beginning of the financial year.
The company, owned by industry mogul Barry Diller, enjoyed above average sales and advertising revenue for a number of its media holdings, which include College Humour and the Daily Beast in addition to its Ask search engine and popular dating site.
Even a typically conservative financial analyst based in Hong Kong had good things to say about the company's third quarter earnings: "It looks like very strong results. Everyone is gaga over Google. This is really the undervalued stock in the space."
Despite pushing its numerous brands into developing markets, the increase in sales did not see a corresponding increase in income, which dropped by nearly twenty percent year on year. Diller suggested that the drop in income came more as a result of the current economic state of affairs rather than any action taken by the company.
While net income stood at $21.7 million for the third quarter of 2009, this figure dropped off to $17.5 million in the most recent earnings report. It is here that comments on the "undervalued" quality of stock in IAC can be brought into question. Over the past 18 months, Google, IACs natural competitor, has vastly expanded both its domestic and international operations, enjoying year on year increases of revenue and income in the neighbourhood of twenty percent.
For all the talk of potential at InterActiveCorp, smart investors will vote with their wallets and, unless Google webhosting services stop growing and garnering huge dividends for its investors, it will remain "undervalued" as it is now.
Is a busy stay-at-home mum with two bright young boys, ages 3 and 4. When she isn't running after the men in her family, she likes sharing tips on cooking, gardening, parenting and being a tech-savvy mum from Suffolk. Also, posting pictures and sharing stories about her wonderful children.
