Media and advertising group revenues continue to increase at IAC/InterActiveCorp.
IAC/InterActiveCorp's media and advertising segment grew by nearly 50 percent in Q4, outpacing the company's other divisions. The division includes IAC Search & Media, which contains Ask.com, Ask.com U.K. and Fun Web Products; Citysearch and Evite.
The media and advertising category brought in $160 million in revenue for the quarter, a 46 percent increase over the same period a year ago. On the search side, growth was driven by an increase in queries and higher revenue per query. Syndicated sponsored listings accounted for 44.5 percent of revenue, while proprietary traffic commanded 55.5 percent, down from 68.8 percent a year ago.
Responding to questions about the company's ambitions as an ad network, IAC/InterActiveCorp Chairman and CEO Barry Diller said the company has no immediate plans to compete with other search players that offer contextual networks. "As far as the ad network business, there are three players, I think there probably won't be a fourth," he said.
The CEO said the company's focus is on three strategies: growing our business, growing Ask.com, and creating value-added content across IAC.
Revenue for full-year 2006 was $6.3 billion, a 15.9 percent increase over 2005. Total fourth quarter earnings were $1.8 billion, a 7.8 percent increase over the year-ago period. Net operating income was $268 million, or $0.67 earnings per share.
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