• by Wendy Davis  @wendyndavis, February 7, 2007

Buoyed by robust search spending, revenue at IAC/InterActive's media and advertising unit grew to $159.8 million last quarter, marking a 46% increase from the same quarter in 2005, the company reported Tuesday.

In its SEC filing, IAC attributed the revenue growth to an increase in both search query volume and in the amount paid per click. The company's media and advertising division, includes local guide site Citysearch, invitation site Evite and search properties Ask.com, Ask.com UK and Fun Web Products, as well as syndicated toolbars.

Although search revenue surged, profits were flat, chief financial officer Tom McInerney said during a conference call with analysts. McInerney said that revenue growth in the low-margin network syndication business surpassed that in Ask.com and the Fun Web Products divisions.

IAC chief Barry Diller told analysts that the company was still considering whether to extend its deal with Google--which currently powers a portion of the paid search results--or sign with Yahoo or MSN. "[W]e had a very good partnership with Google, they are the incumbent. It will take a lot but there are options and we want to play this sensibly," he said.

The company also reported that subscription revenue from online dating site Match.com also was up 17%, while subscribers had increased 7%.

Separately, The Wall Street Journal reported Tuesday that Diller intends to add video to CollegeHumor.com, which IAC purchased a majority stake in last year.