Yahoo! Q3 revenue decreases 5% to $1.072 million, profit fell 26 percent

Search engine major Yahoo! reported revenue excluding traffic
acquisition costs of $1,072 million for the third quarter of 2011, registering
a 5 percent decrease from the third quarter of 2010. 


Income from operations decreased 6 percent to $177 million in the third
quarter of 2011, compared to $189 million in the third quarter of 2010. The
year over year decrease was mainly due to the revenue share related to the
search agreement with Microsoft.


Net earnings decreased 26 percent to $293 million in the third quarter
of 2011, compared to $396 million in the third quarter of 2010.


“We’re pleased that revenue, operating income and EPS were all above
consensus this quarter,” said Tim Morse, CFO and Interim CEO, Yahoo!.


“My focus, and that of the whole company, is to move the business
forward with new technology, partnerships, products, and premium personalized
content – all with an eye toward growing monetization,” Morse added.


Yahoo! is home to 10 number one properties globally and ranks among the
top three in 21 categories worldwide.


Yahoo! has ten out of the top ten original video programs in the
U.S. on the web.


Yahoo! modernized its technology platforms, with 28 additional sites
across the Americas, EMEA and Asia Pacific going live on the new global Yahoo!
Publishing Platform, bringing the total to 95.


Yahoo! and ABC News announced a strategic alliance that combines Yahoo!
News’ unmatched audience, as well as its depth and breadth of content, with ABC
News’ global news gathering operation and trusted anchors and reporters.


Yahoo! introduced a full slate of original, premium, TV-quality Web
shows in tandem with the beta launch of its re-vamped video destination, Yahoo!
Screen.


Yahoo!’s results for the third quarter of 2011 reflect $53 million in
search operating cost reimbursements from Microsoft under the search agreement.

Search operating cost reimbursements are expected to continue to decline
as Yahoo! fully transitions all markets to Microsoft’s search platform and the
underlying expenses are no longer incurred under our cost structure. Our
business outlook for total expenses reflects these anticipated savings.


Display revenue ex-TAC was $449 million, which was flat compared to $448
million for the third quarter of 2010.


Search revenue ex-TAC was $374 million, a 13 percent decrease compared
to $428 million for the third quarter of 2010.


By Telecomlead.com Team
editor@telecomlead.com

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