Move Inc. — the California-based operator of Realtor.com — saw third-quarter losses grow to $22.6 million after taking a large write-down on Welcome Wagon, a direct mail and online marketer of goods and services targeted at new homeowners.
Move Inc. reported quarter-to-quarter growth in its core businesses, Realtor.com, Top Producer and rentals, but said third-quarter revenue fell 4 percent from a year ago, to $61.2 million.
Losses from continuing operations doubled from a year ago, to $2 million, thanks in part to a $4 million charge related to cost reduction initiatives, the company said.
But the biggest hit to Move Inc.’s third-quarter bottom line was a $19.3 million loss on discontinued operations, including a $15.9 million impairment charge and $2.1 million write-down of other operating assets to reflect a decline in value of Welcome Wagon.
Move acquired Welcome Wagon in 2001 and launched WelcomeWagon.com in July 2006. The site offers information about local businesses and services. In announcing second-quarter results, Move Inc. said it had hired an investment banking firm to assist in the sale of Welcome Wagon.
The company said total minutes spent on Realtor.com — the official site of the National Association of Realtors — increased by 17 percent during September from a year ago.
Move Inc. announced the relaunch of the redesigned site last week (see story).
What’s your opinion? Leave your comments below or send a letter to the editor.