EX-99.2 4 a2121990zex-99_2.htm EXHIBIT 99.2
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Exhibit 99.2


IAC/InterActiveCorp
Q3 2003 Earnings
Supplemental Financial Information and Metrics
As filed with the Securities and Exchange Commission on November 5, 2003


Table of Contents

 
   Page(s)
Financial Information:    
  Segment Results   1 - 5

Operating Metrics:
 
 
  Gross Transaction Value   6
  IAC Travel   7
  Electronic Retailing   8
  Ticketing and Personals   9
  Financial Services & Real Estate   10

IAC/InterActiveCorp
Segment Results
$ in millions, rounding differences may exist

 
   Q1 2003
  
 
   Revenue
   Operating
Expenses,
excl. D&A
& merger
costs
   Depreciation
   Cable
distribution
fees
   Operating Income
before
Amortization
   Amortization
of non-cash
items
   Merger
costs (a)
   Pro Forma
Adjustments
   Operating
Income
  
IAC Travel     545.1     (432.0 )   (9.4 )   —     103.7     (31.8 )   (2.0 )   —     69.9  
Electronic Retailing:                                                        
  HSN U.S. (b)     415.0     (354.2 )   (11.7 )   (14.0 )   35.1     (12.2 )   —     —     22.9  
  HSN International     115.2     (97.5 )   (2.8 )   —     15.0     (0.4 )   —     —     14.6  
   
 
 
 
 
 
 
 
 
 
    Total Electronic Retailing     530.2     (451.7 )   (14.5 )   (14.0 )   50.1     (12.5 )   —     —     37.6  

Ticketing
 
 
195.1
 
 
(146.0
)
 
(7.7
)
 
—
 
 
41.4
 
 
(7.0
)
 
(0.1
)
 
—
 
 
34.3
 
Personals     40.9     (36.1 )   (2.1 )   —     2.7     (2.1 )   —     —     0.6  
Local Services     8.4     (14.1 )   (1.1 )   —     (6.8 )   (12.6 )   —     —     (19.4 )
Teleservices     70.8     (63.4 )   (5.5 )   —     1.9     —     —     —     1.9  

Interactive Development
 
 
—
 
 
(1.1
)
 
0.0
 
 
—
 
 
(1.1
)
 
(1.1
)
 
—
 
 
—
 
 
(2.1
)
Corporate expense and other adjustments     —     (11.5 )   (1.8 )   —     (13.3 )   (5.7 )   —     —     (19.0 )
Disengagement expenses(c)     —     (4.5 )   —     —     (4.5 )   —     —     —     (4.5 )
Intersegment Elimination     (3.7 )   3.4     —     —     (0.3 )   —     —     —     (0.3 )
   
 
 
 
 
 
 
 
 
 
TOTAL   $ 1,386.7   $ (1,156.7 ) $ (42.2 ) $ (14.0 ) $ 173.9   $ (72.9 ) $ —   $ —   $ 99.0  
   
 
 
 
 
 
 
 
 
 
                                    Other income, net     (229.6 )
                                                   
 
                                    Earnings (loss) from continuing operations before income taxes and minority interest     (130.6 )
                                    Income tax benefit (expense)     54.2  
                                    Minority interest     (25.7 )
                                                   
 
                                    Earnings (loss) from continuing operations     (102.2 )
                                    Discontinued operations     (4.6 )
                                                   
 
                                    Earnings (loss) before preferred dividend     (106.8 )
                                    Preferred dividend     (3.3 )
                                                   
 
                                    Net income (loss) available to common shareholders   $ (110.1 )
                                                   
 
 
   Q2 2003
  
 
   Revenue
   Operating
Expenses,
excl. D&A
& merger
costs
   Depreciation
   Cable
distribution
fees
   Operating Income
before
Amortization
   Amortization
of non-cash
items
   Merger
costs (a)
   Pro Forma
Adjustments
   Operating
Income
  
IAC Travel     653.4     (511.3 )   (9.6 )   —     132.5     (35.3 )   (8.4 )   —     88.7  
Electronic Retailing:                                                        
  HSN U.S. (b)     404.4     (333.6 )   (11.2 )   (14.8 )   44.7     (12.2 )   —     —     32.6  
  HSN International     122.8     (113.2 )   (2.8 )   —     6.8     (0.3 )   —     —     6.5  
   
 
 
 
 
 
 
 
 
 
    Total Electronic Retailing     527.1     (446.8 )   (14.0 )   (14.8 )   51.5     (12.5 )   —     —     39.0  

Ticketing
 
 
187.5
 
 
(144.1
)
 
(7.3
)
 
—
 
 
36.1
 
 
(7.9
)
 
—
 
 
—
 
 
28.2
 
Personals     48.2     (35.1 )   (2.9 )   —     10.2     (2.6 )   —     —     7.6  
Local Services     45.2     (48.4 )   (1.1 )   —     (4.3 )   (14.9 )   —     —     (19.2 )
Teleservices     69.5     (62.2 )   (5.6 )   —     1.7     —     —     —     1.7  

Interactive Development
 
 
—
 
 
(1.2
)
 
(0.0
)
 
—
 
 
(1.2
)
 
(1.1
)
 
—
 
 
—
 
 
(2.2
)
Corporate expense and other adjustments     —     (17.1 )   (1.1 )   —     (18.2 )   (8.4 )   —     —     (26.6 )
Disengagement expenses(c)     —     (4.9 )   —     —     (4.9 )   —     —     —     (4.9 )
Intersegment Elimination     (4.4 )   4.0     —     —     (0.5 )   —     —     —     (0.5 )
   
 
 
 
 
 
 
 
 
 
TOTAL   $ 1,526.5   $ (1,267.1 ) $ (41.7 ) $ (14.8 ) $ 202.9   $ (82.7 ) $ (8.4 ) $ —   $ 111.8  
   
 
 
 
 
 
 
 
 
 
                                    Other income, net     26.3  
                                                   
 
                                    Earnings (loss) from continuing operations before income taxes and minority interest     138.0  
                                    Income tax benefit (expense)     (51.7 )
                                    Minority interest     (28.4 )
                                                   
 
                                    Earnings (loss) from continuing operations     57.9  
                                    Discontinued operations     38.3  
                                                   
 
                                    Earnings (loss) before preferred dividend     96.2  
                                    Preferred dividend     (3.3 )
                                                   
 
                                    Net income (loss) available to common shareholders   $ 92.9  
                                                   
 

Please see page 5 for footnote explanations

2

IAC/InterActiveCorp
Segment Results
$ in millions, rounding differences may exist

 
   Q3 2003
  
 
   Revenue
   Operating
Expenses, excl. D&A
& merger costs
   Depreciation
   Cable
distribution fees
   Operating Income
before
Amortization
   Amortization
of non-cash items
   Merger
costs (a)
   Pro Forma
Adjustments
   Operating
Income
  
IAC Travel     734.3     (581.3 )   (15.5 )   —     137.5     (56.5 )   (0.9 )   —     80.1  
Electronic Retailing:                                                        
  HSN U.S. (b)     423.0     (349.8 )   (10.9 )   (16.7 )   45.6     (13.2 )   —     —     32.4  
  HSN International     103.0     (98.3 )   (2.7 )   (0.1 )   1.9     (0.3 )   —     —     1.6  
   
 
 
 
 
 
 
 
 
 
    Total Electronic Retailing     526.0     (448.2 )   (13.6 )   (16.7 )   47.5     (13.6 )   —     —     34.0  
Ticketing     177.6     (138.0 )   (7.2 )   —     32.3     (7.7 )   —     —     24.7  
Personals     48.3     (34.8 )   (3.7 )   —     9.8     (5.4 )   —     —     4.4  
Local Services     29.2     (44.9 )   (1.7 )   —     (17.5 )   (13.8 )   —     —     (31.3 )
Financial Services & Real Estate     24.4     (21.1 )   (0.4 )   —     2.9     (7.8 )   —     —     (4.9 )
Teleservices     75.8     (66.3 )   (7.2 )   —     2.3     —     —     —     2.3  
Interactive Development     —     (0.8 )   (0.0 )   —     (0.8 )   —     —     —     (0.8 )
Corporate expense and other adjustments     —     (16.4 )   (1.2 )   —     (17.6 )   (75.2 )   —     —     (92.8 )
Disengagement expenses (c)     —     (4.8 )   —     —     (4.8 )   —     —     —     (4.8 )
Intersegment Elimination     (5.2 )   5.2     —     —     —     —     —     —        
   
 
 
 
 
 
 
 
 
 
TOTAL   $ 1,610.3   $ (1,351.3 ) $ (50.5 ) $ (16.7 ) $ 191.7   $ (179.9 ) $ (0.9 ) $ —   $ 10.9  
   
 
 
 
 
 
 
 
 
 
                                    Other income, net     32.8  
                                                   
 
                                    Earnings (loss) from continuing operations before income taxes and minority interest     43.7  
                                    Income tax benefit (expense)     (13.1 )
                                    Minority interest     (8.3 )
                                                   
 
                                    Earnings (loss) from continuing operations     22.3  
                                    Discontinued operations     (0.3 )
                                                   
 
                                    Earnings (loss) before preferred dividend     22.0  
                                    Preferred dividend     (3.3 )
                                                   
 
                                    Net income (loss) available to common shareholders   $ 18.7  
                                                   
 

Please see page 5 for footnote explanations

3

IAC/InterActive Corp
Segment Results
$ in millions, rounding differences may exist

 
   Q1 2002
  
 
   Revenue
   Operating
Expenses, excl. D&A
& merger costs
   Depreciation
   Cable
distribution fees
   Operating Income
before
Amortization
   Amortization
of non-cash items
   Merger
costs (a)
   Pro Forma
Adjustments (d)
   Operating
Income
  
IAC Travel     281.7     (221.4 )   (4.7 )   —     55.7     (16.3 )   —     (7.7 )   31.6  
Electronic Retailing:                                                        
  HSN U.S. (b)     395.4     (338.7 )   (12.0 )   (12.3 )   32.5     (0.1 )   —     —     32.4  
  HSN International     64.9     (68.7 )   (1.0 )   (0.7 )   (5.5 )   —     —     —     (5.5 )
   
 
 
 
 
 
 
 
 
 
    Total Electronic Retailing     460.3     (407.3 )   (13.0 )   (13.0 )   27.0     (0.1 )   —     —     26.9  

Ticketing
 
 
153.4
 
 
(122.1
)
 
(7.3
)
 
—
 
 
24.0
 
 
(2.5
)
 
—
 
 
—
 
 
21.5
 
Personals     25.4     (18.5 )   (1.2 )   —     5.6     (2.7 )   —     —     2.9  
Local Services     7.3     (15.2 )   (2.5 )   —     (10.4 )   (12.1 )   —     —     (22.5 )
Teleservices     69.2     (62.6 )   (8.7 )   —     (2.0 )   —     —     —     (2.0 )
Interactive Development     —     (0.3 )   —     —     (0.3 )   —     —     —     (0.3 )
Corporate expense and other adjustments     —     (9.0 )   (1.3 )   —     (10.2 )   (2.1 )   —     —     (12.3 )
Disengagement expenses (c)     —     (11.5 )   —     —     (11.5 )   —     —     —     (11.5 )
Intersegment Elimination     (3.2 )   2.2     —     —     (0.9 )   4.1     —     —     3.1  
   
 
 
 
 
 
 
 
 
 
TOTAL   $ 994.1   $ (865.7 ) $ (38.6 ) $ (13.0 ) $ 76.8   $ (31.8 ) $ —   $ (7.7 ) $ 37.3  
   
 
 
 
 
 
 
 
 
 
                                    Other income, net     (16.8 )
                                                   
 
                                    Earnings (loss) from continuing operations before income taxes and minority interest     20.6  
                                    Income tax benefit (expense)     (17.8 )
                                    Minority interest     3.2  
                                                   
 
                                    Earnings (loss) from continuing operations before cumulative effect of accounting change     5.9  
                                    Discontinued operations     20.0  
                                                   
 
                                    Earnings (loss) before cumulative effect of accounting change     25.9  
                                    Cumulative effect of accounting change     (461.4 )
                                                   
 
                                    Earnings (loss) before preferred dividend     (435.5 )
                                    Preferred dividend     (2.0 )
                                                   
 
                                    Net income (loss) available to common shareholders   $ (437.5 )
                                                   
 

4

 
   Q2 2002
  
 
   Revenue
   Operating
Expenses, excl. D&A
& merger costs
   Depreciation
   Cable
distribution fees
   Operating Income
before
Amortization
   Amortization
of non-cash items
   Merger
costs (a)
   Pro Forma
Adjustments (d)
   Operating
Income
  
IAC Travel     379.1     (304.1 )   (5.9 )   —     69.2     (24.9 )   —     —     44.2  
Electronic Retailing:                                                        
  HSN U.S. (b)     375.3     (313.4 )   (13.6 )   (12.5 )   35.8     (0.1 )   —     —     35.7  
  HSN International (e)     70.9     (92.7 )   (1.5 )   (0.6 )   (23.8 )   (0.0 )   —     —     (23.8 )
   
 
 
 
 
 
 
 
 
 
    Total Electronic Retailing     446.3     (406.1 )   (15.1 )   (13.1 )   12.0     (0.1 )   —     —     11.8  
Ticketing     175.4     (134.2 )   (6.6 )   —     34.7     (2.9 )   —     —     31.7  
Personals     29.7     (20.0 )   (2.0 )   —     7.7     (1.0 )   —     —     6.7  
Local Services     7.6     (13.3 )   (1.7 )   —     (7.4 )   (12.1 )   —     —     (19.5 )
Teleservices (f)     71.8     (70.5 )   (8.4 )   —     (7.0 )   (22.2 )   —     —     (29.3 )
Interactive Development     —     (0.5 )   —     —     (0.5 )   (0.7 )   —     —     (1.2 )
Corporate expense and other adjustments     —     (10.3 )   (1.0 )   —     (11.3 )   (1.5 )   —     —     (12.8 )
Disengagement expenses (c)     —     (6.2 )   —     —     (6.2 )   —     —     —     (6.2 )
Intersegment Elimination     (2.8 )   2.2     —     —     (0.5 )   0.0     —     —     (0.5 )
   
 
 
 
 
 
 
 
 
 
TOTAL   $ 1,107.1   $ (962.9 ) $ (40.6 ) $ (13.1 ) $ 90.5   $ (65.6 ) $ —   $ —   $ 24.9  
   
 
 
 
 
 
 
 
 
 
                                    Other income, net     (85.2 )
                                    Earnings (loss) from continuing operations before income taxes and minority interest     (60.3 )
                                                   
 
                                    Income tax benefit (expense)     (21.6 )
                                    Minority interest     (15.3 )
                                                   
 
                                    Earnings (loss) from continuing operations     (97.2 )
                                    Gain on VUE transaction     2,378.3  
                                    Discontinued operations     (7.3 )
                                                   
 
                                    Earnings (loss) before preferred dividend     2,273.8  
                                    Preferred dividend     (3.3 )
                                                   
 
                                    Net income (loss) available to common shareholders   $ 2,270.6  
                                                   
 

Please see page 5 for footnote explanations

5

IAC/InterActiveCorp
Segment Results
$ in millions, rounding differences may exist

 
   Q3 2002
  
 
   Revenue
   Operating
Expenses, excl. D&A
& merger costs
   Depreciation
   Cable
distribution fees
   Operating Income
before
Amortization
   Amortization
of non-cash items
   Merger
costs(a)
   Pro Forma
Adjustments(d)
   Operating
Income
  
IAC Travel     459.3     (369.4 )   (5.9 )   —     83.9     (29.7 )   (1.6 )   —     52.7  
Electronic Retailing:                                                        
  HSN U.S.(b)     370.9     (304.2 )   (13.6 )   (12.6 )   40.4     (25.1 )   —     —     15.3  
  HSN International(g)     78.7     (108.9 )   (2.6 )   —     (32.7 )   (2.8 )   —     —     (35.5 )
   
 
 
 
 
 
 
 
 
 
    Total Electronic Retailing     449.6     (413.1 )   (16.2 )   (12.6 )   7.7     (27.9 )   —     —     (20.2 )

Ticketing
 
 
162.2
 
 
(128.6
)
 
(7.6
)
 
—
 
 
25.9
 
 
(3.0
)
 
—
 
 
—
 
 
22.9
 
Personals     33.5     (26.6 )   (2.2 )   —     4.8     (1.0 )   —     —     3.7  
Local Services     7.6     (12.7 )   (1.7 )   —     (6.8 )   (12.1 )   (1.4 )   —     (20.3 )
Teleservices     75.3     (64.5 )   (9.6 )   —     1.2     —     —     —     1.2  

Interactive Development
 
 
—
 
 
(0.6
)
 
—
 
 
—
 
 
(0.6
)
 
(1.1
)
 
—
 
 
—
 
 
(1.7
)
Corporate expense and other adjustments     —     (11.8 )   (3.4 )   —     (15.2 )   (1.5 )   —     —     (16.7 )
Disengagement expenses(c)     —     (4.7 )   —     —     (4.7 )   —     —     —     (4.7 )
Intersegment Elimination     (2.3 )   2.0     —     —     (0.3 )   (0.0 )   —     —     (0.3 )
   
 
 
 
 
 
 
 
 
 
TOTAL   $ 1,185.2   $ (1,030.0 ) $ (46.7 ) $ (12.6 ) $ 95.9   $ (76.3 ) $ (3.0 ) $ —   $ 16.6  
   
 
 
 
 
 
 
 
 
 
                                    Other income, net     10.0  
                                                   
 
                                    Earnings (loss) from continuing operations before income taxes and minority interest     26.6  
                                    Income tax benefit (expense)     (36.1 )
                                    Minority interest     (17.2 )
                                                   
 
                                    Earnings (loss) from continuing operations     (26.6 )
                                    Discontinued operations     (6.7 )
                                                   
 
                                    Earnings (loss) before preferred dividend     (33.4 )
                                    Preferred dividend     (3.3 )
                                                   
 
                                    Net income (loss) available to common shareholders   $ (36.6 )
                                                   
 
 
   Q4 2002
  
 
   Revenue
   Operating
Expenses, excl. D&A
& merger costs
   Depreciation
   Cable
distribution fees
   Operating Income
before
Amortization
   Amortization
of non-cash items
   Merger
costs(a)
   Pro Forma
Adjustments(d)
   Operating
Income
  
IAC Travel     479.3     (400.3 )   (7.9 )   —     71.0     (20.9 )   (0.7 )   —     49.4  
Electronic Retailing:                                                        
  HSN U.S.(b)     471.6     (388.4 )   (13.8 )   (15.0 )   54.4     (7.2 )   —     —     47.2  
  HSN International     94.4     (91.6 )   (2.4 )   —     0.5     2.1     —     —     2.6  
   
 
 
 
 
 
 
 
 
 
    Total Electronic Retailing     566.0     (480.0 )   (16.2 )   (15.0 )   54.8     (5.1 )   —     —     49.7  

Ticketing
 
 
164.3
 
 
(133.3
)
 
(7.6
)
 
—
 
 
23.5
 
 
(2.7
)
 
—
 
 
—
 
 
20.8
 
Personals     37.2     (24.7 )   (2.2 )   —     10.3     (1.0 )   —     —     9.3  
Local Services     8.3     (14.3 )   (1.7 )   —     (7.7 )   (12.1 )   (4.2 )   —     (24.0 )
Teleservices(h)     77.9     (64.8 )   (9.3 )   —     3.8     —     —     —     3.8  

Interactive Development
 
 
—
 
 
(1.1
)
 
—
 
 
—
 
 
(1.1
)
 
(1.1
)
 
—
 
 
—
 
 
(2.2
)
Corporate expense and other adjustments     —     (17.4 )   (1.4 )   —     (18.7 )   (4.4 )   —     —     (23.1 )
Disengagement expenses(c)     —     (9.3 )   —     —     (9.3 )   —     —     —     (9.3 )
Intersegment Elimination     (3.0 )   2.4     —     —     (0.6 )   —     —     —     (0.6 )
   
 
 
 
 
 
 
 
 
 
TOTAL   $ 1,330.0   $ (1,142.8 ) $ (46.4 ) $ (15.0 ) $ 125.9   $ (47.2 ) $ (4.9 ) $ —   $ 73.7  
                                    Other income     52.6  
                                                   
 
                                    Earnings (loss) from continuing operations before income taxes and minority interest     126.3  
                                    Income tax benefit (expense)     10.4  
                                    Minority interest     (16.8 )
                                                   
 
                                    Earnings (loss) from continuing operations     119.9  
                                    Discontinued operations     28.2  
                                                   
 
                                    Earnings (loss) before preferred dividend     148.1  
                                    Preferred dividend     (3.3 )
                                                   
 
                                    Net income (loss) available to common shareholders   $ 144.9  
                                                   
 

Please see page 5 for footnote explanations

6

 
   FY 2002
  
 
   Revenue
   Operating
Expenses, excl. D&A & merger costs
   Depreciation
   Cable
distribution fees
   Operating Income
before
Amortization
   Amortization
of non-cash items
   Merger
costs (a)
   Pro Forma
Adjustments
   Operating
Income
  
IAC Travel     1,599.4     (1,295.2 )   (24.4 )   —     279.8     (91.9 )   (2.3 )   (7.7 )   177.9  
Electronic Retailing:                                                        
  HSN U.S. (b)     1,613.2     (1,344.7 )   (53.0 )   (52.4 )   163.1     (32.6 )   —     —     130.5  
  HSN International     309.0     (361.8 )   (7.5 )   (1.3 )   (61.6 )   (0.7 )   —     —     (62.3 )
   
 
 
 
 
 
 
 
 
 
    Total Electronic Retailing     1,922.2     (1,706.5 )   (60.5 )   (53.7 )   101.5     (33.3 )   —     —     68.2  

Ticketing
 
 
655.3
 
 
(518.1
)
 
(29.1
)
 
—
 
 
108.1
 
 
(11.1
)
 
—
 
 
—
 
 
96.9
 
Personals     125.8     (89.7 )   (7.7 )   —     28.4     (5.8 )   —     —     22.6  
Local Services     30.8     (55.5 )   (7.6 )   —     (32.3 )   (48.3 )   (5.6 )   —     (86.3 )
Teleservices     294.1     (262.4 )   (35.9 )   —     (4.1 )   (22.2 )   —     —     (26.4 )
Interactive Development     —     (2.6 )   —     —     (2.6 )   (2.9 )   —     —     (5.4 )
Corporate expense and other adjustments     —     (48.5 )   (7.0 )   —     (55.5 )   (9.4 )   —     —     (64.9 )
Disengagement expenses (c)     —     (31.8 )   —     —     (31.8 )   —     —     —     (31.8 )
Intersegment Elimination     (11.3 )   8.9     —     —     (2.4 )   4.1     —     —     1.7  
   
 
 
 
 
 
 
 
 
 
TOTAL   $ 4,616.4   $ (4,001.3 ) $ (172.3 ) $ (53.7 ) $ 389.1   $ (220.9 ) $ (7.9 ) $ (7.7 ) $ 152.6  
   
 
 
 
 
 
 
 
 
 
                                    Other income, net     (39.4)  
                                                   
 
                                    Earnings (loss) from continuing operations before income taxes and minority interest     113.2  
                                    Income tax benefit (expense)     (65.1)  
                                    Minority interest     (46.1)  
                                                   
 
                                    Earnings (loss) from continuing operations before cumulative effect of accounting change     2.0  
                                    Gain on VUE transaction     2,378.3  
                                    Discontinued operations     34.2  
                                                   
 
                                    Earnings (loss) before cumulative effect of accounting change     2,414.5  
                                    Cumulative effect of accounting change     (461.4)  
                                                   
 
                                    Earnings (loss) before preferred dividend     1,953.1  
                                    Preferred dividend     (11.8)  
                                                   
 
                                    Net income (loss) available to common shareholders     $1,941.3  
                                                   
 
(a)
Merger costs incurred by Expedia, Hotels.com and Ticketmaster for investment banking, legal and accounting fees were related directly to the mergers and are treated as non-recurring for calculating Operating Income before Amortization and Adjusted Net Income. These costs were incurred solely in relation to the mergers, but may not be capitalized since Expedia, Hotels.com and Ticketmaster were considered the targets in the transaction for accounting purposes. These costs do not directly benefit operations in any manner, would not normally be recorded by IAC if not for the fact it already consolidated

7

    these entities, and are all related to the same transaction, as IAC simultaneously announced its intention to commence in exchange offers for the companies in 2002. The majority of costs are for advisory services provided by investment bankers, and the amounts incurred in 2003 were pursuant to the same fee letters entered into by each company in 2002. Given these factors, IAC believes it is appropriate to consider these costs as one-time. Operating Income before Amortization by segment is presented before one-time items.

(b)
HSN U.S. includes results from IDL, which was previously included in HSN International. HSN U.S. revenue is shown net of disengagement related sales rebates.
(c)
Disengagement expenses relate to incremental costs in the disengagement markets to obtain carriage lost due to disengagement and marketing activities primarily to inform viewers of new channel positioning for the HSN service.
(d)
Pro forma adjustments to 2002 represent the impact of IAC's initial acquisition of a majority stake in Expedia which occurred in February 2002.
(e)
HSN International includes charges of $17.8 million in Q2 2002 related to the shutdown of HSN's Spanish language service.
(f)
Teleservices includes charges of $9.3 million in Q2 2002 related principally to the closure of certain of PRC's call centers as well as $22.2 million of goodwill impairment.
(g)
HSN International includes a $31.4 million charge related to the shut-down of HSN's operations in Italy.
(h)
PRC includes a reversal of $5.9 million due to a favorable outcome related to the closure of a call center and excess purchase accounting reserve.

8

IAC/InterActiveCorp
Gross Transaction Value
$ in millions

 
    
    
   2002
   2003
  
 
   FYE
12/31/00
   FYE
12/31/01
   Q1
   Q2
   Q3
   Q4
   FYE
12/31
   Q1
   Q2
   Q3
   Q4
   FYE
12/31
  
Total Gross Transaction Value ("GTV")   $ 4,963   $ 9,011   $ 2,818   $ 3,254   $ 3,394   $ 3,475   $ 12,942   $ 4,166   $ 4,434   $ 4,515          

Interactive GTV (a)
 
$
4,734
 
$
6,717
 
$
2,254
 
$
2,667
 
$
2,839
 
$
2,868
 
$
10,627
 
$
3,568
 
$
3,853
 
$
3,956
 
 
 
 
 
  % of Total     95 %   75 %   80 %   82 %   84 %   83 %   82 %   86 %   87 %   88 %        

Internet GTV (b)
 
$
3,100
 
$
5,020
 
$
1,838
 
$
2,224
 
$
2,337
 
$
2,259
 
$
8,658
 
$
2,913
 
$
3,211
 
$
3,323
 
 
 
 
 
  % of Total     62 %   56 %   65 %   68 %   69 %   65 %   67 %   70 %   72 %   74 %        

International GTV
 
$
605
 
$
1,036
 
$
319
 
$
433
 
$
526
 
$
572
 
$
1,851
 
$
700
 
$
795
 
$
808
 
 
 
 
 
  % of Total     14 %   11 %   11 %   13 %   16 %   16 %   14 %   17 %   18 %   18 %        
(a)
Interactive GTV is defined as GTV which was generated from the TV or PC from HSN, HSN.com, Ticketmaster.com, Hotels.com, Expedia, Personals, TV Travel Shop, Interval, Entertainment.com and LendingTree.
(b)
Internet GTV is defined as GTV which was generated online from HSN.com, Ticketmaster.com, Hotels.com, Expedia, Personals, Interval, Entertainment.com and LendingTree.

9

IAC/InterActiveCorp

IAC Travel

 
   2002
   2003
 
   Q1
   Q2
   Q3
   Q4
   FYE 12/31
   Q1
   Q2
   Q3
   Q4
   FYE 12/31
Gross Bookings(mm)(a)(b)                                                        
  Domestic   $ 1,247   $ 1,496   $ 1,629   $ 1,570   $ 5,942   $ 2,004   $ 2,257   $ 2,316        
  International     87     137     223     174     621     300     323     388        
   
 
 
 
 
 
 
 
 
 
  Total   $ 1,334   $ 1,633   $ 1,852   $ 1,744   $ 6,563   $ 2,304   $ 2,580   $ 2,704        

Packages Revenue(mm)(a)
 
$
26
 
$
42
 
$
50
 
$
47
 
$
164
 
$
60
 
$
77
 
$
88
 
 
 
 
Number of Transactions(mm)(a)(c)     3.5     4.4     5.2     4.8     18.0     5.6     6.7     7.3        

Interval(d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Members (000s)     N/A     N/A     1,471     1,500     N/A     1,522     1,547     1,578        
  Exchange Confirmations (000s)     N/A     N/A     167     151     N/A     225     202     190        
  Share of communications online     N/A     N/A     9.6 %   10.3 %   N/A     13.2 %   12.3 %   15.7 %      
(a)
Pro forma for Expedia as of January 1, 2002 and includes actual results for TVTS and Interval which IAC acquired on May 1, 2002 and September 24, 2002, respectively.

(b)
Total retail value of transactions booked during a specified time period, including taxes and fees, for both agency and merchant transactions.

(c)
The count of purchases for a given day net of cancellations. Includes agency and merchant sales. Package transactions are counted as 1 transaction even though the purchase consists of multiple components (ie. air, car, hotel)

(d)
IAC acquired Interval on September 24, 2002. Metrics include full quarter for Q3 2002.

10

IAC/InterActiveCorp
Electronic Retailing
In millions except per unit

 
    
    
   2002
   2003
 
   FYE 12/31/00(a)
   FYE 12/31/01(a)
   Q1
   Q2
   Q3
   Q4
   FYE 12/31
   Q1
   Q2
   Q3
   Q4
   FYE 12/31
HSN- U.S.                                                                    
  Units shipped (b)     36.4     39.8     9.8     9.5     9.3     11.1     39.7     10.4     9.9     9.8        
  Gross profit %     34.9 %   34.0 %   35.4 %   38.4 %   38.1 %   36.8 %   37.1 %   36.5 %   38.6 %   37.7 %      
  Return rate     19.5 %   18.8 %   18.9 %   18.7 %   18.4 %   18.1 %   18.5 %   18.0 %   18.3 %   17.5 %      
  Product mix (c):                                                                    
    Home Hard Goods     N/A     28 %   28 %   22 %   23 %   30 %   26 %   24 %   24 %   26 %      
    Home Fashions     N/A     11 %   12 %   13 %   15 %   13 %   13 %   15 %   12 %   16 %      
    Jewelry     N/A     25 %   24 %   26 %   25 %   25 %   25 %   22 %   24 %   23 %      
    Health/Beauty     N/A     20 %   23 %   23 %   22 %   22 %   22 %   27 %   28 %   26 %      
    Apparel/Accessories     N/A     16 %   13 %   16 %   15 %   12 %   14 %   12 %   12 %   9 %      
  Average Price Point   $ 47.50   $ 46.54   $ 44.62   $ 43.38   $ 43.65   $ 46.79   $ 44.71   $ 43.98   $ 45.15   $ 47.50        
  HSN total homes (end of period) (d)     77.1     83.0     74.9     77.1     77.8     78.8     78.8     79.5     79.2     79.7        
  HSN FTEs (end of period) (d)(e)     62.9     68.5     65.6     67.7     67.8     68.7     68.7     69.8     69.8     70.2        
  America's Store FTE's (end of period)     8.6     12.3     10.2     11.1     8.7     9.0     9.0     9.6     8.8     13.9        
  HSN.com % of Sales     3 %   8 %   11 %   11 %   11 %   13 %   12 %   14 %   14 %   14 %      

HSN International (Households as of end of period) (ownership % as of 9/30/03 in parentheses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  HSE Germany (includes Austria and Switzerland) (90%)     29.3     29.7     29.8     30.2     30.4     30.8     30.8     30.9     31.4     31.9        
  TVSN (China) (21%)     N/A     64.0     80.0     80.0     64.0     64.0     64.0     64.0     64.0     64.0        
  Shop Channel (Japan) (30%)     9.2     11.6     11.9     13.1     13.6     14.4     14.4     14.9     15.5     15.9        
  Euvia:                                                                    
    Euvia Travel (49%)     N/A     28.8     26.3     27.5     27.5     28.3     28.3     29.4     29.6     26.1        
    Neun Live (49%)     N/A     28.8     26.3     26.1     26.1     26.9     26.9     27.7     27.6     27.6        

All HSN-U.S. metrics have been restated to include results from IDL in HSN-U.S. which had previously been included in HSN International & Other.

(a)
2000 and 2001 results include estimated units for Outlets and IDL.

(b)
Units do not include Liquidation and services.

(c)
In Q2 03, HSN realigned its product category hierarchy. Product Mix for 2000 assuming reclassification not available.

(d)
Not pro forma for disengagement of broadcast stations due to the sale of USA Broadcasting to Univision, which resulted in a net loss of 9.9 mm homes and 4.4 mm FTEs.

(e)
FTEs reflect a 50% weighting of DBS homes, in order to more accurately reflect the actual performance of these subs and adjust for the impact of their significant growth as a percentage of total HSN distribution.

11

IAC/InterActiveCorp
Ticketing
In millions

 
    
    
   2002
  

2003
 
   FYE 12/31/00
   FYE 12/31/01
   Q1
   Q2
   Q3
   Q4
   FYE 12/31
   Q1
   Q2
   Q3
   Q4
   FYE 12/31
Number of tickets sold     83.0     86.8     23.9     24.3     22.8     24.1     95.1     27.1     24.1     23.8                              
Gross value of tickets sold   $ 3,256   $ 3,611   $ 997   $ 1,144   $ 1,041   $ 1,106   $ 4,288   $ 1,265   $ 1,199   $ 1,148        
                                                                     

Personals (a)
(in 000's)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Paid subscribers     156.9     382.2     527.7     604.2     653.2     724.8     724.8     766.6     857.5     909.9        
(a)
The operating metrics include the impact of Soulmates and uDate as of the acquisition dates of April 12, 2002 and April 4, 2003 respectively.

The financial, statistical and other information contained herein is unaudited.

As filed with the Securities and Exchange Commission on November 5, 2003.

12

IAC/InterActiveCorp
Financial Services & Real Estate

 
    
   2002
   2003
  
 
   FYE
12/31/01
   Q1
   Q2
   Q3
   Q4
   FYE 12/31
   Q1
   Q2
   Q3
   Q4
   FYE 12/31
  
Volume                                                                
Loan/Real Estate Requests transmitted:                                                                
  Number (000s)     1,472.4     402.0     384.4     570.6     553.7     1,910.6     696.1     733.6     621.3          
  Volume of Requests (bn)   $ 127.9   $ 33.6   $ 37.7   $ 60.6   $ 57.2   $ 189.1   $ 72.6   $ 78.9   $ 56.1          

Transactions closed in Quarter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Number (000s)     293.1     57.8     70.4     90.6     70.9     289.7     74.2     83.9     90.7          
  Volume of Transactions Closed (bn)   $ 12.6   $ 4.1   $ 4.6   $ 6.1   $ 8.1   $ 22.9   $ 8.6   $ 10.2   $ 10.6          

Transmit Rate
 
 
49.6
%
 
58.0
%
 
59.5
%
 
62.0
%
 
63.5
%
 
61.0
%
 
64.7
%
 
65.4
%
 
63.6
%
 
 
 
 
Static Pool Close Rate (a)     11.6 %   11.4 %   14.0 %   16.1 %   14.6 %   14.2 %   12.7 %   14.2 %   14.0 %        
Number of Lenders     145     163     178     189     197     197     206     212     223          
Number of Realty Agencies     N/A     665     660     647     645     645     665     659     675          
Note: The acquisition of LendingTree closed on August 8, 2002.                                              
(a)
The static pool close rate includes loans and real estate transactions. Prior to 2003, the static pool close rate only included loan transactions. The static pool close rate for loans incorporates the average time lag between the submission of a loan request (a "QF") and the closure of a loan. It represents the closure rate of approved QFs from a static pool of requests submitted in the most recent quarter with a complete closure cycle. A static pool is considered to have a complete closure cycle after 120 days from the month in which a mortgage QF was submitted, 90 days after a home equity QF was submitted, 60 days after an auto or personal QF was submitted, and less than 30 days after a credit card QF was submitted. The static pool closing cycle for a real estate referral is 180 days from the month in which a real estate referral was submitted.

The financial, statistical and other information contained herein is unaudited.
As filed with the Securities and Exchange Commission on November 5, 2003.

13



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IAC/InterActiveCorp Q3 2003 Earnings Supplemental Financial Information and Metrics As filed with the Securities and Exchange Commission on November 5, 2003
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