E-commerce company IAC/InterActiveCorp. swung to a fourth-quarter loss as sharply higher retail earnings couldn't offset a 25 percent drop in travel income and a significant impairment charge.
The New York company, whose several dozen businesses include the Home Shopping Network, LendingTree and Ticketmaster, on Wednesday reported a loss of $45.9 million, or 7 cents a share, after posting earnings of $152.8 million, or 20 cents a share, in the year-ago fourth quarter.
The latest quarter included a host of charges, including $184.8 million in goodwill impairment, that lopped 28 cents a share off net income.
IAC reported its adjusted net income rose 10 percent to $250 million, or 33 cents a share, from $228 million, or 29 cents a share, in the year-earlier quarter.
A Thomson First Call survey of analysts projected earnings, excluding items, of 27 cents a share.
The adjustments to the latest quarter include a charge of $59.5 million for the amortization of noncash compensation costs, a charge of $108 million for the amortization of intangibles and a goodwill-impairment charge of $185 million. The adjustments for the year-earlier period included a charge of $22 million for the amortization of noncash compensation costs and a charge of $83.9 million for the amortization of intangibles.
Quarterly revenue fell 4.9 percent to $1.72 billion from $1.8 billion a year ago.
In December, IAC Chairman Barry Diller announced the company was splitting off its travel unit, which includes Expedia Inc. and Hotels.com, to form a publicly traded company that will carry the Expedia name.
The move, expected to be completed by the end of the second quarter, will pare down IAC's businesses to electronic retail and services.
The company's travel unit reported fourth-quarter revenue of $496.5 million, an 11 percent increase, though operating income fell 25 percent to $80.9 million.
IAC's electronic-retailing unit saw revenue rise 9 percent to $703.3 million and reported that operating income jumped 43 percent to $74.9 million.
Yearly earnings slipped to $152 million, or 20 cents per share, from $154 million, or 23 cents, in the previous year. After adjustments, income was $747 million, or 97 cents per share, with revenue falling 2 percent to total $6.19 billion.
Analysts expected income of 91 cents per share and revenue of $6.19 billion.