Yahoo profit more than doubles; revenue up 2%

Internet major Yahoo has reported a more than two-fold jump in net income to $396 million for the third quarter ended September 2010, on strong advertising proceeds, but posted a sluggish growth in overall revenues.

Yahoo recorded a net income of $186 million in July- -September quarter of 2009, the company said in a statement.

It's total revenues inched up 2 per cent from last year to $1.6 billion for the quarter ended September 30, 2010.
    
"We delivered a solid quarter with good display advertising revenue growth, big gains in operating income, and margins that were double what they were last year," Yahoo President and CEO Carol Bartz said.
    
The quarterly earnings also included $81 million in search operating cost reimbursements from Microsoft Corp under a search and ad sales agreement.
    
Looking ahead, Yahoo said it expected revenues in the range of $1.125 million to $1.225 million in the forthcoming quarter and the company projected that income from operations for the fourth quarter to be $200 million to $280 million.
    
During the quarter, display advertising on owned and operated sites continued to perform well, growing 17 per cent in the quarter, compared to the third quarter of 2009.
   
In terms of geographical locations, Asia Pacific was the star performer with revenues rising to $321.59 million in the third quarter of the year from $255.32 million in the year-earlier, while revenue from Americas and Europe were down during the quarter.
    
Revenue from Americas fell to $1.14 billion from $1.17 billion, and revenues from EMEA (Europe, Middle East, and Africa) declined to $133.09 million from $142.57 million.