Tree.com Inc., Charlotte, N.C., had net income of over $27 million in the second quarter, driven largely by the $26 million gain recorded on the sale of Home Loan Center Inc. (which did business as LendingTree Loans) to Discover, which after several delays finally closed during the period.
However, the company’s lead generation business and other continuing operations had a net loss of nearly $2 million for the period.
In 2Q11, Tree.com had a net loss of $35 million and including a net loss of $25 million from continuing operations.
Revenue in 2Q12 was $17 million, up 28% from the first quarter but flat with the same period one year prior.
Tree.com recorded $1.1 million in revenue from marketing consulting services in 2Q12, which it said should contribute to third and fourth quarter revenues, but not beyond 2012.
Doug Lebda, chairman and CEO of Tree.com said, “This was a quarter of transition, as we completed the HLC transaction, sold down the majority of the remaining mortgage loan inventory, successfully transitioned lead volume back to our lender network, and, as of July 21, closed warehouse lines of credit.
“I am encouraged by recent growth in the demand for our mortgage lead volume, particularly in this low rate environment. In the quarter, we grew capacity for refinance leads on the network by 22%, added 34 new lenders and grew mortgage Exchange revenue by 20% or more with 40 of the lenders on our network."
