IAC Trades Down After Q2 Report, Gambles On Increased MGM Stake

IAC/InterActiveCorp IAC reported $726.4 million in second-quarter sales Monday, a 38.8% decrease over sales of $1.19 billion in the same period last year.

The company reported second-quarter GAAP EPS $1.13 versus 16 cents in the same quarter last year and adjusted EBITDA at $14.9 million versus $55.6 million in the second quarter of last year. 

IAC's Match Group, MGM Updates: IAC completed the separation of Match Group Inc MTCH from the remaining IAC businesses on June 30.

In recent months, IAC said it has accumulated a 12% interest in MGM Resorts International MGM for an aggregate $1 billion.

IAC CEO Joey Levin and Barry Diller, its chairman and senior executive, said in a Monday letter to shareholders that they began analysis of the gaming sector with a focus on a portion of MGM's revenue that's so small that it rounds down to zero: its online gaming revenue.

Diller has spent more than $1 billion to purchase 59 million shares of MGM Resorts.

“We’ve followed the online gaming space for a while, looking for an opportunity to enter, but we were generally unsatisfied with the landscape we saw," the execs said in the letter.

MGM "pairs a strong physical presence and brand with talented online operators in a fast-growing joint venture in online gaming,” Levin and Diller said. 

IAC Price Action: IAC shares were trading down 1.34% at $131.27 in Monday's after-hours session. The stock has a 52-week high of $136.02 and a 52-week low of $100.22.

MGM shares gained 13.83% in Monday's regular session to close at $21.65. 

Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsBarry Dilleronline gaming
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...