Have you seen my Barry Diller costume?
I'm sure I saw it somewhere. It's slick, custom-tailored, and comes with more (dot-com) properties than a Monopoly board.
There are more treats than tricks in IAC/InterActiveCorp's
What's that? You don't like my costume? You think it's not complete without a paper bag over my head, because a dot-com company should be growing a lot faster than these single-digit-percentage baby steps?
You don't get it. We knew that some of IAC's properties were going to get slammed during the period. Lending Tree? Who the heck sees lender lead-generating as a growth business as we wade through the subprime squalor? True to form, Lending Tree suffered a 41% dip on the top line. Last year's healthy operating profit disintegrated into a small operating loss.
IAC also had expected weakness at its RealEstate.com brokerage business. Web-based players like IAC and ZipRealty
IAC also closed its America's Store concept back in April, holding back the company's retail side, which would have taken a hit anyway given shrinking margins at HSN.
With all of those sandbags, taking baby steps forward is a relative victory.
The real star this quarter was the company's online media properties. Fueled by the success of Ask.com and Citysearch, revenue and operating profits before amortization hits in that segment grew by 40% and 74%, respectively.
Ask.com is a distant fourth in the domestic search engine space, but there's no shame in missing out on a medal as it sees Google
So what are you waiting for? Help me find that darn costume already!
Try these outfits on for size:
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Longtime Fool contributor Rick Munarriz doesn't really own a Barry Diller outfit. He is a freelance contributor to IAC's Citysearch, but does not have a financial stake in IAC or in any of the other companies in this story. He is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.