Demand Media reports drop in revenue, profit on search changes

Reuters

Nov 7 (Reuters) - Demand Media said on Thursday thata drop in search engine referrals and weak advertising salessent revenue down 2 percent in the third quarter to $96.3million.

The company, which owns the websites eHow, LiveStrong andCracked, mainly makes its money from articles and videos thatsurface high in search results.

Its other line of business which maintains top level genericweb domain names like ".actor" and ".social" increased revenue11 percent to $37.7 million.

Demand Media has hit some hurdles in recent quarters and sawthe abrupt exit of its co-founder, CEO and chairman RichardRosenblatt in October.

The company reported a net loss of $10.4 million or 12 centsa share compared with a gain of $3.2 million or 4 cents a sharein the same period a year ago.

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