Dublin-based search engine operators suffer 70% hit in pre-tax profits

PRE-tax profits at the Dublin-based company that operates the ask.com website in Ireland and Britain last year decreased by 70% from $11.7 million (€8.9m) to $3.4m (€2.6m).

Accounts recently filed with the Companies’ Office show IAC Search & Media Europe Ltd’s revenues decreased by 19% from $155m to $126m to the end of December 2009.

The filings show that the company’s operating profit decreased by 66% from $11.5m to $3.8m during the year.

According to the directors, the decline in revenues: “Was primarily attributable to the effect of the economic downturn on advertising budgets and the decline in network revenue resulting from the discontinuation of relationships with certain partners that took place during 2008 in conjunction with the renewed Google agreement that was effective in early 2009”.

They continue: “The impact of this discontinuation was fully anniversaried during the second quarter of 2009. In addition, the decrease in revenue per query at ask.co.uk resulting from fewer clicks per visit as users find what they are searching for sooner, due to the ask.co.uk site’s improved user experience, resulting from its relaunch in October 2008”.

The accounts show the company had accumulated profits of $23.6m at the end of 2009.

The company — which has its registered office at the College & Business Technology Park, Blanchardstown — is one of a number of US internet firms that has operations in Ireland. Others include google, amazon, yahoo, ebay and facebook.

The filings show that the $125.8m of the firm’s $126m turnover was generated in Britain with the remaining $214,257 coming from the ‘rest of the world’. The accounts show the company’s staff numbers dropped from 13 to 11 and employment costs — including directors’ — last year declined from $1.37m to $940,139.

The accounts show directors’ emoluments last year declined from $348,192 to $260,384.

The company’s ultimate parent is IAC Search and Media Inc based in New York City.

The filings show the company’s cost of sales decreased from $127.2m to $106.4m, while the company’s administrative expenses decreased marginally from $16.3m to $15.7m.

On its future developments, the company says it will continue to expand its efforts in the EU and other international markets.

The directors did not recommend the payment of a dividend last year.

Ask.com was originally known as Ask Jeeves and the original idea behind the website was to allow users to get answers to questions.

The Jeeves character was based on Jeeves, Bertie Woodster’s fictional valet from the works of PG Wodehouse.

The ask.com search engine was started in 1996 by Garrett Gruener and David Warthen in Berkeley, California.