Feb 7 (Reuters) - IAC/InterActiveCorp reported a 17.2 percent rise in quarterly revenue on Wednesday, driven by solid growth across most of its businesses, including Angi Homeservices Inc and video unit that houses its popular video-sharing website Vimeo.
Revenue from Angi Homservices rose about 80 percent to $223.2 million for the fourth quarter, beating analysts’ estimate of about $208 million, according to Thomson Reuters I/B/E/S. The unit accounted for nearly a quarter of its revenue.
The company, controlled by media mogul Barry Diller, created Angi Homeservices in May last year after buying consumer review website operator Angie’s List and merging its with its digital home services marketplace business.
IAC has also been sharpening its focus on Vimeo and in September acquired Livestream to bolster the video-sharing unit. Livestream hosts 10 million live events per year and pulls in more than 40 million monthly viewers.
This has partly helped Vimeo add subscribers at a brisk pace, driving its paid subscriptions up 14 percent to 873,000 and helping its video unit post a 40 percent jump in revenue.
“We have other businesses like Vimeo there within IAC in their relatively earlier stages, but Vimeo is probably the biggest non-public opportunity inside of IAC right now,” Chief Executive Joey Levin told Reuters in an interview.
The company’s Tinder-owner Match Group Inc also reported robust results on Tuesday as more people paid for subscriptions to the company’s dating apps and websites.
However, IAC’s net profit took a hit due to costs associated with Angie’s acquisitions and its creation of the new unit.
Net income fell to $32.8 million, or 37 cents per share, for the fourth quarter ended Dec. 31 from $102.1 million, or $1.18 per share, a year earlier.
The company said that in the reported quarter, it also recorded a one-time tax provision of $31.8 million for its foreign earnings, but will not be required to pay the tax because of its net operating loss position.
Excluding items, IAC reported a profit of $1.40 per share.
Total revenue rose to $950.6 million from $811.2 million.
Up to Wednesday’s close, IAC’s shares had risen 90.5 percent in the past 12 months. (Reporting by Pushkala Aripaka and Laharee Chatterjee in Bengaluru; Editing by Anil D’Silva)