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Q2 2011 Earnings Call
July 27, 2011, 11:00 am ET
Tom McInerney - EVP & CFO
Barry Diller - Chairman and Senior Executive
Greg Blatt - CEO
John Blackledge - Credit Suisse
Ross Sandler - RBC Capital Markets
Brian Fitzgerald - UBS
Mark Mahaney - Citigroup
Jeetil Patel - Deutsche Bank
Justin Post - Banc of America Merrill Lynch
Jason Helfstein - Oppenheimer & Company
Ingrid Chung - Goldman Sachs
Jim Friedland - Cowen & Company
Scott Kessler - Standard & Poors
Previous Statements by IACI
» IAC/InterActive Q1 2009 Earnings Call Transcript
» IAC/InterActiveCorp. Q4 2008 Earnings Call Transcript
» IAC/InterActiveCorp Q3 2008 Earnings Call Transcript
» IAC/InterActiveCorp Q2 2008 Earnings Call Transcript
Thank you operator, and thank you everyone for joining us this morning for our Q2 2011 earnings call. Barry and Greg will make some brief remarks after which I will come back and then we will go to Q&A. But first I will remind you that during this call, we may discuss our outlooks for future performance. These forward-looking statements typically are preceded by words such as; we expect, we believe, we anticipate, or similar statements.
These forward-looking statements are subject to risks and uncertainties and our actual results could differ materially from the views expressed today. Some of these risks have been set forth in our Q2 2011 press release and our periodic reports filed with the SEC. We will also discuss certain non-GAAP measures and I refer you to our press release and the Investor Relations section of our website for all comparable GAAP measures and full reconciliation.
With that, I'll turn it over to Barry.
Thank you, Tom. Good morning everybody. I think the real significance to me today, quarter is certainly good, but I think you all kind of know that over the last two years really, the last at least eight quarters, I mean we’ve been growing in averagely up 40% a year, 40% a quarter, would be right, I think.
High 30s, I think the last eight quarter by one average growth.
So, I think if there is significant, it’s the significant fact. A few years ago, we said that that we were really going to manage our businesses. We thought we had in our hand, we thought we had some good businesses. We thought that with real concentration they could be developed and that they would start producing real results, that been happening not for a month, not for a quarter, but for a couple of years. We see that continuing.
I don’t know that I would make any projections towards two future years of high 30s growth, but we see a tremendous amount of runway ahead. We have done all this as I think you all know with very little investment. It has not cost us very much capital to grow these businesses are probably CapEx for the businesses themselves and by the nature of these businesses quite low.
We, as you know, today we authorized an additional $15 million shares for potential purchase, will follow our historical strategy of being opportunistic about buying the stock, but we certainly over the year has been consistent, so certainly in doing so and certainly in this last quarter we have.
So, it’s a good summary of not only the growth to date, but the last couple of years but with the change in management with Mr. Blatt becoming CEO and we would like to take a further concentration and focus on the businesses we have and the opportunities within those businesses. I think we are the in best shape we have ever been. That’s a big statement for me.
So with that Mr. Blatt, why don’t you talk to the folks?
Thanks, Barry. I guess the biggest development since the last call was our announcement of the Meetic transaction. This is a case I think of being both opportunistic and strategic. Meetic’s business is about as core to our business skills and focuses is really anything. But we only decided to act when we saw the opportunity for real long-term value creation. The competitive situation is pretty tense in Europe right now. So the price really had to come down a lot from its highs in order for us to be interested in increasing our stake.
A €15 per share, we are confident we can get rewarded for the hard work we will do to get Meetic’s core business going in the right direction again. We’re also increasing the global footprint across which we can leverage initiatives in the dating space in years to come. On capital allocation as Barry referenced I think what you have seen this quarter is representative of our general philosophy and outlook. Bottom line is we like our businesses a lot. So we’ve been buying back stock and we are making investments in our core areas.
Meetic is obviously a big example. We’ve also begun committing dollars to develop new dating and similar products through a new group formed by OkCupid’s founders, putting small dollars in certain search initiatives and generally scouring our four principles business areas media search, local and dating for profitable ways to invest. I think when you couple this with the healthy dose we ploughed back into our shares themselves demonstrates confidence in what we are doing and believe there is real room for expansion, both organically and to a lesser extent through acquisitions within and around our current businesses.