By Harshita Mary Varghese
(Reuters) – IAC beat analysts’ estimate for fourth-quarter revenue on Tuesday, thanks to continued growth at its biggest business, sending the internet holding company’s shares up more than 3% in extended trading.
The company, however, forecast its annual adjusted core profit below estimates.
Core profit for 2025 will be impacted by several non-recurring expenses, including costs related to the spin-off of its home services marketplace Angi and departure of CEO Joey Levin following the unit’s separation, it said.
IAC has “large one-time costs on a forward basis associated with the separation agreement with Levin,” Chief Financial Officer Christopher Halpin told Reuters in an interview.
“We are booking a six-year $3 million consulting contract with him (Levin) on a forward basis, all upfront,” Halpin said.
IAC expects its adjusted earnings before interest, taxes, depreciation and amortization to be between $345 million and $425 million for 2025, compared with analysts’ average estimate of $438.7 million, according to data compiled by LSEG.
Its total revenue of $989.3 million for the fourth quarter beat the estimate of $934.4 million.
Dotdash Meredith, IAC’s biggest business which owns and operates top brands such as the Food & Wine magazine and Investopedia, saw its digital revenue grow 10% to $311 million — marking its fourth consecutive quarter of double-digit growth.
Angi’s revenue fell 11% to $267.9 million during the quarter, as it continues to see fewer service requests and lower acquisition of new professionals.
“Revenue declines (at Angi) will lessen or sequentially improve every quarter this year, and we expect to get back to revenue growth by 2026,” Halpin said.
Angi’s spin-off is expected to close in the first half of 2025.
(Reporting by Harshita Mary Varghese in Bengaluru; additional reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar)
