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Internet Capital Group (ticker: ICGE), which invests in start-up Internet businesses and owns a 40% stake in affiliate marketing company LinkShare, reported Q4 results. The stock was down about 2.5% in a weak tape in subsequent trading. Key stats and a quick comment:


Q4 Results
(all percentages changes and comparisons are year on year, unless stated otherwise)

  • Consolidated revenue of $15.0 million down from $16.5 million.
  • 8 core equity companies grew revenue by 18% and reached positive EBITDA.
  • Strong performance from: LinkShare, CrediTrade, StarCite.
  • Consolidated companies' revenues were $15 million versus $12.7 million.
  • Adjusted net loss was $4.5 million, versus ($13.0-) million.
  • GAAP per share loss was ($0.07), versus ($2.95).
  • At end-quarter, ICG corporate cash was $67.3 million with debt of $60 million. Marketable securities were worth $54 million, $43 million of which was stock in Blackboard (ticker: BBBB).

Quick comments

  • Think these numbers are confusing? Traditional earnings metrics aren't very helpful with ICGE, because its value is determined by the value of its stakes in other companies, and in many cases its ownership is too small to consolidate the results of the holdings into its own results.
  • ICGE has a current market cap of about $294 million, and an enterprise value of about $273 million.

ICGE chart below.
Icge

Source: Internet Capital Group (ICGE) reports 4Q04 numbers