You are using an older browser version. Please use a supported version for the best MSN experience.

IAC Quarterly Earnings Reveals Why Newsweek is Ending Print Run

6/13/2014 Brent Lang

By Brent Lang
TheWrap

IAC/InterActiveCorp, the media conglomerate behind web properties like Match.com and About.com, bested Wall Street's expectations Wednesday, as operating profits and revenue jumped during its most recent fiscal quarter.

analyst projections of 65 cents, while adjusted profit jumped 23 percent to $67.4 million. Net income declined nearly 40 percent to $40.7 million, but that was due to one-time tax provision, the company said.

Driven by growth in IAC's online dating services, revenue at the company climbed 38 percent to  $714.5 million. Analysts had predicted sales of just over $690 million.

But there were dark blotches on the balance sheet, as well. In particular, the latest earnings report revealed why IAC has decided to end Newsweek's print run at the end of the year. Revenue at IAC's media unit increased a whopping 182 percent to $52.7 million after it took full control of the news weekly from the family of the late billionaire Sidney Harman last summer. With that oversight came more red ink, however. Operating losses in the segment grew from $2.8 million to more than $13.2 million, which the company attributed to Newsweek.

Under Tina Brown, the former editor of Vanity Fair, Newsweek drew attention for provocative cover stories that, for instance, imagined what Princess Diana would be like if she'd lived to be 50. But the magazine didn't sell enough. By transitioning to an all-digital publication, Newsweek will lay off staff and save millions in printing and productions costs, Brown has said.

AdChoices
AdChoices
AdChoices
image beaconimage beaconimage beacon