Yahoo profit up, but revenue falls short of forecasts
- 21 July, 2010 06:59
Yahoo's second-quarter revenue was $US1.60 billion, coming in on the low end of the company's expectations and falling short of analyst predictions.
Revenue for the quarter ending June 30 was up just 2 percent from the same quarter last year. Yahoo had expected second-quarter revenue to fall between $US1.60 billion and $1.68 billion.
Subtracting commission and other fees paid to partners, revenue was $US1.13 billion, short the $1.16 billion that analysts polled by Thomson Financial were hoping for.
The results are not likely to appease investors who have been growing impatient waiting for a turnaround at Yahoo. Google, the search giant and a competitor to Yahoo, recently reported second-quarter revenue that was up 24 percent over last year.
Yahoo's profit, however, rose faster than expected. Net income for the quarter was $213 million, up 51 percent over the same period last year.
On a pro forma basis, which excludes certain items, net income was $219.88 million, or $0.16 per share, more than the $0.14 that analysts were expecting and up from $145.40 million and $0.10 a year ago.
In a statement, Yahoo's CEO Carol Bartz said she was pleased with the results, pointing out "healthy" growth in display advertising, which was up 19 percent in the quarter compared to the same period in 2009.
Yahoo reported that revenue from marketing services, or advertising revenue, was up 4 percent while revenue from fees, associated with services like Flickr Pro, was down 16 percent over the same quarter last year.
Yahoo said that revenue for the third quarter is expected to be in the range of $1.57 billion to $1.65 billion.
Company executives plan to speak further about the results in a conference call.