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IAC 3Q profit more than triples, declares dividend

November 3, 2011

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NEW YORK—IAC/InterActive Corp. declared its first-ever dividend Thursday while posting a third-quarter profit that more than tripled.

The owner of dating site, search engine and numerous other websites said net income rose to $65 million, or 69 cents per share. That compared with $17.5 million, or 16 cents per share, in the same period last year.

The number of shares outstanding dropped by 10 percent, which increased earnings per share for the recent quarter.

Adjusted for various items, results came to 56 cents per share.

Revenue rose 25 percent to $516.9 million, from $413 million last year.

Analysts, on average, were expecting profit of 49 cents per share, on revenue of $494.6 million, according to data provided by FactSet.

IAC, based in New York, said it would pay a quarterly dividend of 12 cents on Dec. 1, to shareholders of record as of Nov. 15. It is its first dividend since it went public in the mid-1990s.

"I think it's an outdated and somewhat inane concept that high growth companies shouldn't pay dividends," IAC Chairman Barry Diller said in a statement, a comment seen as a swipe against Apple Inc. and other big-name tech companies that don't pay dividends.

IAC said its search revenue, which accounts for more than half of overall revenue, rose 33 percent to $273.3 million. Revenue from the dating site climbed 15 percent to $102.5 million.

In morning trading, IAC shares added $2.27, or 5.7 percent, to $41.85.