IAC/InterActiveCorp IAC reported $726.4 million in second-quarter sales Monday, a 38.8% decrease over sales of $1.19 billion the same period last year.

The company reported second-quarter GAAP EPS $1.13 versus 16 cents in the same quarter last year and adjusted EBITDA at $14.9 million versus $55.6 million in the second quarter of last year. 

IAC's Match Group, MGM Updates: IAC completed the separation of Match Group Inc MTCH from the remaining IAC businesses on June 30.

In recent months, IAC said it has accumulated a 12% interest in MGM Resorts International MGM for an aggregate $1 billion.

IAC CEO Joey Levin and Barry Diller, its chairman, and senior executive, said in a Monday letter to shareholders that they began analysis of the gaming sector with a focus on a portion of MGM's revenue that's so small that it rounds down to zero: its online gaming revenue.

Diller has spent more than $1 billion to purchase 59 million shares of MGM Resorts.

“We’ve followed the online gaming space for a while, looking for an opportunity to enter, but we were generally unsatisfied with the landscape we saw," the execs said in the letter.

MGM "pairs a strong physical presence and brand with talented online operators in a fast-growing joint venture in online gaming,” Levin and Diller said. 

IAC Price Action: IAC shares were trading down 1.34% at $131.27 in Monday's after-hours session. The stock has a 52-week high of $136.02 and a 52-week low of $100.22.

MGM shares gained 13.83% in Monday's regular session to close at $21.65.