Tree.com lost $1.1 million in the fourth quarter, after experiencing reduced revenue from its lead generation business. It also took a $5.6 million impairment charge on intangible assets.
For the same period one year prior it lost $12.5 million, while in the third quarter Tree.com earned $12.6 million.
Its LendingTree Loans division – which is profitable and is in the process of being sold to Discover Financial Services -- is now being carried on the balance sheet as discontinued operations. Although Tree.com reported a fourth quarter loss, it earned $7.1 million from discontinued operations, as continued low interest rates enabled the company to generate substantial returns from its lending business, said chairman and chief executive Doug Lebda.
When the sale to Discover is completed Tree.com hopes to have a cash balance of roughly $50 million. The firm has been steadily reducing its marketing expenses, which tend to include advertising.
Discontinued operations in the third quarter earned $16.3 million for Tree.com but lost $4.1 million for the fourth quarter 2010. Tree.com is based in Charlotte, N.C.
