Drew Angerer/Getty Images News
IAC shares rose 4% during post-market trading on Tuesday after the company reported fourth-quarter 2023 financial results that showed a massive gain on its investment in MGM Resorts International (MGM).
Its quarterly revenue of $1.058 billion was below the consensus of $1.07 billion. Your diluted earnings per share They were reported at $3.70.
For fiscal 2024, IAC expects total adjusted EBITDA to range between $320 million and $420 million.
IAC owns dozens of brands and online magazines, including Angi Inc., Dotdash Meredith, Ask Media Group, and The Daily Beast.
Dotdash Meredith, IAC's largest deal, accounted for $482 million. Its digital revenue reached $284 million, an increase of 9%. This marked the first quarter of growth since the Meredith acquisition.
However, print revenue fell 12% year over year to $198 million. The declines were “driven by the planned reduction in circulation of certain publications and the ongoing migration of advertising spending from print to digital,” IAC reported.
Angi Inc.'s revenue for the quarter was $300 million.
IAC also owns 64.7 million MGM shares. Investment more than doubled year-over-year to $512.6 million by the fourth quarter of 2023.
“Our largest holding, MGM, is a major beneficiary of growth in the travel and leisure sector, which has materially outpaced overall consumer spending overall over the past 20 years,” CEO Joey Levin said in a letter to the shareholders. “The increasing time consumers spend on social media has elevated exposure and access to new experiences, making top of the travel and leisure funnel (FOMO) only grow.”
MGM shares fell 4% in post-market trading on Tuesday.
IAC also confirmed the sale of its Mosaic Group to Bending Spoons for $160 million. The deal is expected to close before the end of the first quarter of 2024.
