IAC shows Q4 growth

Online search advertising helped boost IAC/Interactive to a healthy Q4 growth rate. According to the company's SEC filing, advertising revenue grew 46% over Q4 2005 to about $159.8 million.

by Kristina Knight

Search query volume and the amount spent per click were both contributing factors in IAC's growth rate. Media and advertising showed 46% growth over Q4 2005 to $159.8 million, Services showed 8% growth to $409.8 million and Retailing showed 4% growth over Q4 2005 to $978.9 million. The Retail sector was led by growth from HSN and catalog sales. Emerging Businesses had the highest growth rate (737%) to $6 million in Q4 2006. Memberships and Subscriptions showed the least growth (3%) $270.8 million in Q4 2006.

IAC Chairman and CEO, Barry Diller, said IAC's deal with Google was still on the table, but no decisions had been made over whether to continue or cancel the partnership. Google powers part of Ask.com's paid search results; alternatives would be to send that portion to Yahoo or MSN properties. "[W]e had a very good partnership with Google, they are the incumbent. It will take a lot but there are options and we want to play this sensibly," he said (via MediaPost).

IAC's advertising holdings include CitySearch, invitation site Evite, Ask.com/Ask.com UK and Fun Web Products.