India Internet News
Yahoo Second Quarter Income Rises, Although Revenue Buried On Weak Ad Business
21 July 2011
The Internet company Yahoo have reported 11% of rise in its net profit to USD 237 million for April-June, 2011, although their sales show ads business fall during the quarter.
According to the company records, Yahoo had made a net profit of USD 213 million by second quarter which ended on June 30, 2010. In just a quarter, their net profit was cut down by 5%, compared to the last years, to USD 1.08 billion because of the fall in advertising sales.
Yahoo, who have already signed an agreement for search with Microsoft to rationalize its works, said 12% division from advertising profit produced on Yahoo websites in association with the software company was the main reason of the second quarter fall in profits. Yahoo said, apart from Microsoft profit sharing and other items, net profit must have rose by 1% during the April-June period of 2011, if you look at the last year quarter.
Showing advertising profits were USD 40 million lower than anticipated at USD 467 million, but raised by 5% in all compared to last years. Yahoo CEO, Carol Bartz said, “We experienced softness in display revenue in the second half of the quarter due to comprehensive changes we have made in our sales organisation to position ourselves for more rapid display growth in the future.” Moreover, the search engine income was below 15% to USD 371 million during the second quarter of 2011, due to their search agreement with Microsoft and issues related to its adCenter technology.
In future, Yahoo awaits net income of between USD 1.05 billion and USD 1.1 billion during the third quarter, whereas analysts are anticipating a net income of USD 1.12 billion.