The Indianapolis-based consumer-review company said Wednesday morning that it lostIBJ puts a positive spin on the news that Angie's List losing money by talking about the company's increased revenue. Of course, at the end of the day increased revenue at means nothing if a profit is not turned. Angie's List has not turned a profit in its 19 year history.
The loss, adjusted to extinguish debt, came to 8 cents per share, which fell short of Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for a loss of 5 cents per share.
Angie's List shares have decreased 45 percent since the beginning of the year. Shares fell 8.8 percent in premarket trading Wednesday, to $7.55 each.
In a bizarre move, Indianapolis and state officials last week pledged $25 million in subsidies for Angie's List to expand its operations. Three years earlier. the city and state gave Angie's List $14 million in subsidies. In between the two bequests of taxpayer money, there has been a layoff, two investor lawsuits accusing Angie's List executives of fraud, and the IBJ's expose of a strange real estate dealings involving Angie's List CEO Bill Oesterle in which a company he formed and owned 70% of, bought 40 parcels of downtown property for $2.625 million and then, using the city's 2011 subsidy money, bought the property for Angie's List for $6.25 million. I recounted Angie's List history and have links to IBJ stories in the column I wrote last week about the company.