IAC/InterActiveCorp, the parent company to LendingTree and RealEstate.com, today reported increased earnings within its Financial Services and Real Estate segment for the second quarter, driven mostly by LendingTree.

Revenue for the Financial Services and Real Estate segment was $130.3 million, up from 44.6 million during the same period last year. Operating income was $6.2 million within the sector, compared with a loss of $1.2 million a year ago.

The higher results within the segment were driven primarily by 194 percent higher revenue per transaction, the company said, reflecting LendingTree’s strategy to close in its own name a portion of the loans sourced through the LendingTree network.

LendingTree entered the mortgage business in September 2004 with the purchase of online direct mortgage lender HomeLoanCenter.com. Despite the acquisition, the company continues to offer consumers multiple competing offers for loan products from the more than 200 lenders within its network.

A total of 71,400 loans closed through the company’s network in the second quarter, up 2 percent from 70,100 a year ago. A total of 4,000 real estate transactions closed in the second quarter, up 53 percent from 2,600 a year ago.

“The dollar value of closed loans rose 7 percent in the period to $8.4 billion, with higher purchase activity and flat refinance activity,” IAC said in a statement. Dollar value represents that total value of loans closed through the company, not revenue earned.

The dollar volume for real estate closings rose 52 percent to $984 million, IAC said. Dollar volume represents the total amount for closings, not revenue earned.

Within the Financial Services and Real Estate segment, revenue earned per transaction was $78.31, up from $26.68 per transaction a year earlier, the company said.

InterActiveCorp’s holdings include home shopping, ticket, travel, lodging, dating, and mortgage and real estate-related businesses.

For all segments excluding Expedia, IAC reported revenue of $1.4 billion for the second quarter, up from $976.6 million during the same period last year. Operating income was $66.5 million, up from $29.3 million.

IAC in December 2004 announced it would split into two companies, spinning off Expedia and other online travel businesses from the rest of its segments. The spin-off is expected to occur next week, with IAC and Expedia beginning trading as independent public companies on Aug. 9.

IAC shares (Nasdaq: IACI) traded at $26.64 a share this morning.


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