Yahoo profits up but revenues fall
SAN FRANCISCO (AFP) - The quest by Yahoo chief Marissa Mayer to reverse the struggling Internet pioneer's fortunes stumbled on Tuesday as the company reported that profit rose modestly but revenue had slipped.
Yahoo shares fell 3.5 per cent to US$22.95 in after-hours trade after the California company reported net income of US$390.9 million, up 38.7 per cent, but that revenue fell 6.6 per cent to US$1.14 billion in the quarter that ended on March 31.
Earnings per share came in at 35 cents, compared to 23 cents a year earlier.
Display ad revenue dropped 11 per cent from the same period last year while overall search revenue was down 10 per cent after factoring in money paid to partners that route traffic to Yahoo properties, according to earnings figures.