Media conglomerate IAC forecasts gloomy start to 2014, shares fall

Reuters

Oct 29 (Reuters) - Barry Diller's IAC/InterActivecorp forecast a gloomy start to 2014 and missed analysts'third-quarter estimates, sending shares down as much as 13percent after the bell on Tuesday.

The U.S. media and entertainment company, whose clutch ofwebsites includes Ask.com, Dictionary.com and About.com, forecast a "flattish" first-quarter margin at its search andapplications business that accounts for more than half ofoverall revenue.

The business, which bought About.com from The New York TimesCo in 2012, is also expected to report a mid-singledigit decline in fourth-quarter revenue, Chief Financial OfficerJeff Kip said in a post-earnings conference call.

He blamed the hit on weaker websites' revenue asthird-quarter cost-per-click changes are set to take effect.

IAC shares trading down at $50.40 in post-market trading.

Quarterly revenue rose 6 percent to $756.9 million, missinganalysts' expectations of $804.5 million, according to ThomsonReuters I/B/E/S.

Adjusted earnings rose 82 percent to $1.29 per share in thethree months ended Sept. 30, beating analysts' expectations of95 cents.

Launched by Diller in 1995, IAC is a backer of controversialstartup Aereo and also owns video-sharing website Vimeo.com, anda number of dating sites including Match.com.

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