Diller’s USA Interactive Posts Profitable Quarter

Media mogul Barry Diller’s e-commerce company, USA Interactive, reported a large fourth-quarter profit, primarily from its travel businesses, dating service and an $80-million tax gain.

The New York company reported net income of $148.1 million, or 30 cents per share, in the three months ended Dec. 31, versus a loss of $46.4 million, or 15 cents, a year earlier. Revenue increased to $1.34 billion from $948.5 million in 2001. The results also reflected new accounting rules, which lowered operating expenses.

USA Interactive owns or controls the Home Shopping Network, Match.com, Ticketmaster, Hotels.com, Expedia and other electronic commerce businesses.

“These things that utilize the magic box of the computer have simply huge growth ahead of them,” Chief Executive Diller said during a conference call with analysts.

The gains come at a good time for Diller, who is fending off criticism that he has been shortchanging his USA management duties by also overseeing Vivendi Universal’s U.S. entertainment assets. Chief among the critics has been Marvin Davis, the Los Angeles billionaire who has made a bid for Universal and indicated he would oust Diller.

Last year, USA Interactive, then known as USA Networks Inc., sold its entertainment properties to Vivendi for $11 billion and took a 5.4% ownership stake in the ensuing joint venture. Diller and Vivendi have been trying to untangle the complex partnership. Diller said Thursday that USA may sell its Vivendi stock but did not elaborate.

USA shares jumped $1.87 to $23.21 on Nasdaq.