IAC -- the parent company of People Inc., the
former Dotdash Meredith -- experienced an 8% revenue decline during its third quarter YoY. But its net loss fell by 91% YoY to $20.4 million.
Digital revenue at People Inc. grew
by 9% to $269 million due to performance marketing and licensing growth.
In addition, People Inc. has reached an agreement with Microsoft to join a group of top
publishers to build Microsoft’s Publisher Content Marketplace (PCM), a two-sided content marketplace designed to compensate publishers for use of their content by AI players and products.
This is People Inc.’s second licensing deal, following one it signed with OpenAI.
On another front, IAC reports a $17.5 million “unrealized gain” on an
investment in MGM Resorts International.
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“IAC’s third quarter was solid as we focus on the heart of our future: People Inc., the largest digital and print
publisher in the U.S., and our investment in MGM, a leader in global entertainment and gaming, says Barry Diller, chairman and senior executive, IAC.
Diller adds: “People Inc. continues
to outperform with eight consecutive quarters of Digital growth, a new Microsoft AI licensing deal, and its recent Feedfeed acquisition. MGM is demonstrating strong digital and international growth
while positioning itself for rebound in its exceptional Las Vegas assets.”
Reflecting this confidence, Diller says: “We once again bought back shares in IAC this quarter,
allocating capital to the companies we know best.” Specifically, 7.3 million shares were repurchased since Q2 for a total of $100 million.
The operating loss would have moved into
the positive realm except for the following items:
- $15 million of severance-related costs driven by headcount reductions at People Inc. However, this hit was partially
offset by a $5 million net gain from amending a lease to surrender some office space early.
- A $3 million lease impairment and $1 million in severance-related costs at
Care.com.
- A total of $21 million of legal fees and settlement expenses for litigation that concluded during the quarter in the
Emerging & Other category.