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BizReport : Research archives : May 04, 2007

IAC reports 10% revenue boost in Q1

Online hubs, CitySearch and helped boost IAC's Q1 revenue 10 percent, according to company reports. Revenue reached $1.6 billion in Q1 as the company launched a huge campaign to promote the hub.

by Kristina Knight

Media and advertising revenue showed the most growth (43%), reaching more than $168 million in Q1. Search queries were behind much of this growth.

"Profit growth was aided by the fact it was a reasonably light quarter in terms of marketing as we prepare for a new second quarter campaign and product launch," said IAC CFO Tom McInerney during the earnings call. "With an expected major advertising for commencing in Q2, we expect only modest profits in this segment in the second quarter."

The launch of's contextual ad platform will help revenue throughout the remainder of 2007. The platform is an addition to Ask Sponsored Listings and allows advertisers to choose where an ad is placed according to relevancy and cost.

Another addition the company is preparing for is the short-vid option for CitySearch. The short videos will showcase advertisers' location and establishment and replaces the old leaderboard platform.

Later this year, the partnership between IAC and Google could end. The partnership places paid text listings from Google beside IAC search results. There is no word at this point if IAC and Google will sign back on to one another or if another paid search platform will take Google's place.

Tags:, CitySearch, IAC, online advertising

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  • Match revenue is up 12% to $82.4 million for Q1 due to US price increases and a 1% worldwide rise in membership. Most of the growth came from abroad. Marketing costs are up, but other costs are down. International growth was 13%. Operating income is up 306% to $8.2 million. Match has tightened its belt, pushed a higher % of its budget to marketing spends, and is being more aggressive and edgy with its messaging. i.e. ads, Match ads on MySpace. So far its working.

    Mark Brooks



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