Q2 results were released last night, but I didn’t have a chance to get to it until tonight. None the less it is worth noting, especially because we track so many of LendingTree other movements. Nothing new really, the post spin Tree.com that will include LendingTree, RealEstate.com, GetSmart, TuitionTree and InsuranceTree brought down IAC ‘s overall earnings, along with restructuring costs and investments write downs.
Results As They Would Appear Post Spins*
Revenue
Q2 2008 Q2 2007 Growth
$ in millions
New IAC $354.4 $318.9 11%
HSN, Inc. 695.8 681.5 2%
Ticketmaster 382.4 293.4 30%
Tree.com, Inc. 60.0 114.0 -47%
Interval Leisure Group, Inc. 103.2 85.9 20%
The excuse was the same as last quarter and the same excuse we all have and had to do with few loans sold, the decline in per loan revenue and tighter loan guidelines.
I think it will be interesting to see how long they are going to hold onto the mortgage vertical has their main focus. I think very soon you are going to see some branding shifts into credit card debt and student loans.
We shall see…
.
.
.
“I think very soon you are going to see some branding shifts into credit card debt and student loans.”
Sounds like you know something…
[Reply]
Nope, I only know that they have been looking at big losses on the lending side and it would not be difficult to begin focus on more profitable verticals with the same brand.
[Reply]
I think the credit card vertical would be a good fit, there are nice margins in this and I am surprised they have not already targeted this. I know that InternetBrands went in this direction earlier in the year. Student loans may be tougher as this industry has been hurt by the credit meltdown.
BTW, please follow up on the reply email I sent regarding the advertising when you have a moment..thx
[Reply]
Lendingtree is doing an affiliate deal with creditcards.com to power their credit card vertical. Seriously how much could that possibly move the needle for them?
[Reply]