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| Yahoo! posts 3-fold jump in net income |
| Press Trust of India / New York Oct 21, 2009, 15:03 IST |
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Internet major Yahoo! has reported an over three-fold jump in net income at $186 million for the third quarter of 2009, supported by company's cost cutting initiatives, even as sales dropped 12 per cent.
In the year-ago period, the company had a net income of $54 million, Yahoo! said in a statement.
The company's revenue declined by 12 per cent to $1.57 billion in the quarter ended September 30 from $1.78 billion in the year-ago period.
The company showed some improvement in its key business areas, even as marketing services revenues fell 12 per cent and fees revenues slipped 11 per cent compared to that in the third quarter of last fiscal.
However as compared to the second quarter of 2009, the internet giant's marketing services revenues were flat, while fees revenue increased two per cent.
"With revenue coming in above our guidance and flat sequentially, we had a solid third quarter that signals our major businesses have stabilised," Yahoo! Chief Executive Officer Carol Bartz said.
The company expects the momentum to continue and has given a bullish guidance for the fourth quarter. Yahoo! anticipates income from operations for the fourth quarter of 2009 to be in the range of $135 million to $155 million.
Further, the American company projects revenue in the range of $1.6 billion to $1.7 billion for the next quarter.
Revenues from Yahoo! owned and operated sites stood at $851 million in July to September quarter from $1.02 billion in the same quarter last year. The decrease was primarily due to 19 per cent decline in search advertising revenue and an eight per cent fall in display advertising revenue.
While, revenues from affiliate sites were also declined by six per cent to $526 million.
Yahoo! maintained a strong balance-sheet with $4.5 billion in cash and marketable debt securities at the end of September 30 compared to $3.52 billion at December 31, 2008.
Bartz said with new products like Yahoo! homepage, the company's brand revitalisation campaign and expansion in the Middle East through Maktoob.Com would enhance "people's online lives."
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