MGM Stock – IAC’s Earnings Topped Estimates. Home Services Were the Key.
The internet holding company
posted better-than-expected first-quarter financial results, driven by strength in its majority-owned Angi home-services business.
For the quarter, IAC (ticker: IAC) reported revenue of $876 million, up 28% from a year ago, ahead of the Street consensus forecast of $837 million. Profits were $329.1 million, or $3.46 a share, including an unrealized $292 million gain on the company’s stake in the casino company
MGM Resorts International
The company said Angi (ANGI) had revenue of $387 million, up 13%, and ahead of the $378 million Wall Street expected. Angi had a break-even quarter, while analysts expected a loss of 4 cents a share.
IAC reiterated that shareholders will vote May 14 on the company’s planned spinoff of the cloud-based video tools company Vimeo, which is expected to list on Nasdaq under the symbol VMEO on May 25, with when-issued trading to start a week earlier. As Barron’s has noted, Vimeo likely accounts for half or more of IAC’s current market cap of just over $20 billion.
Vimeo reported its own first-quarter results on Monday. Still included in IAC’s results for now, the company had revenue of $89 million, up 57%. The company’s Dotdash unit, which operates a group of 14 websites, had revenue of $65 million, up 48%. The company’s sites focus on health (Verywell), finance (Investopedia and The Balance), technology (Lifewire), travel (TripSavvy), food (Spruce Eats), home (Spruce Home), and beauty (Byrdie and Brides).
Search revenues were $181 million, up 17%, while “emerging and other” had revenue of $153.2 million, up 80%. That includes $77.2 million in revenue from Care.com, a marketplace for caregivers, and $51.2 million for Mosaic Group, a collection of mobile apps.
IAC routinely provides monthly results for its operations, and included the figures in the earnings announcement. Revenues were up 25% in April for Angi, 46% for Vimeo, 67% for Dotdash, 43% for search, and 37% for emerging and other.
In Thursday’s regular session, IAC was off 1%, to $230.31.
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