Barry Diller means business. Big business. And Diller doesn't dally on delivery!
In a day-long presentation to investors, the InterActiveCorp chief executive detailed his five-year plan to build the "largest, most profitable interactive commerce company in the world."
IAC's target for 2008 is to achieve a net income of $1.9 billion (€1.63bn; £1.14bn), or $2.55 a share, on revenue of $9.6 billion. That's a margin of 19.8% to be squeezed from IAC's ecommerce stable, whose runners include Expedia, Hotels.com, TV Travel Shop, Ticketmaster, ReserveAmerica and Home Shopping Network.
To this end, Diller will ante-up marketing dollars bigtime. This year's $500m marketing spend will be almost doubled in 2004 to $900m and, presumably, pro rata thereafter.
But investors are less impressed by outbound moolah than that travelling in the opposite direction. Following news of the Diller blueprint, IAC shares on Nasdaq dipped Tuesday by 1% to $33.39.
Data sourced from: The Wall Street Journal Online; additional content by WARC staff