May 9, 2018 / 8:16 PM / 13 days ago

IAC quarterly profit surges on Match, ANGI Homeservices strength

May 9 (Reuters) - IAC/InterActiveCorp reported a first-quarter profit on Wednesday that more than doubled, driven by strong growth across all its businesses, including Tinder-owner Match Group and ANGI Homeservices.

Revenue from ANGI Homservices rose 69 percent to $255.3 million in the reported quarter, beating analysts’ estimate of about $252.2 million, according to Thomson Reuters I/B/E/S. The unit accounted for a quarter of IAC’s total revenue.

IAC created ANGI by merging its digital home services marketplace business with consumer review website operator Angie’s List that it bought last year.

First-quarter results were also helped by robust growth in its Match Group unit as it benefited from more subscribers to its dating services. IAC owns more than 80 percent of Match Group.

The unit, which owns numerous online dating services, reported results on Tuesday that beat estimates and played down the threat of Facebook Inc.

Earlier this month, Facebook said it was developing a dating feature for its 2.2 billion monthly users. Following the announcement, IAC and Match Group both lost about $5 billion in combined market value.

“Social networks have always been competitors,” Chief Executive Officer Joey Levin told Reuters.

When asked if IAC plans to invest more in its dating businesses following Facebook’s announcement, Levin said there were no specific investments tied to that.

IAC has also been ramping up its efforts to expand its presence in the rapidly growing video market through Vimeo, which offers cloud-based video hosting, editing and sharing tools to individuals and business customers.

Total subcribers for Vimeo rose 13 percent to 901,000 in the first quarter.

IAC’s net income surged to $71.1 million, or 71 cents per share, in the quarter ended March 31, from $26.2 million, or 29 cents per share, a year earlier.

Total revenue rose about 31 percent to $995.1 million. (Reporting by Pushkala Aripaka and Laharee Chatterjee in Bengaluru; Editing by Shounak Dasgupta)

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