Yahoo! Inc has registered a decrease in revenues for the third quarter of 2009 but profits have increased beyond expectations.
The company behind current number two US property website realestate.yahoo.com reported US$1,575 million in revenue for the quarter ended September 30, a decrease of 12 percent from the third quarter of 2008 but slightly above the second quarter of 2009.
Marketing services revenue from Yahoo! Owned and Operated websites decreased by 15 percent compared to the third quarter of 2008, which the company says was primarily driven by a 19 percent decline in search advertising revenue and an 8 percent decline in display advertising revenue. Revenue from Yahoo!’s distribution network of websites also declined by 6 percent compared to 2008.
While its revenues declined, Yahoo!’s net income for the quarter was $186 million or $0.13 per share – a 244 percent increase from the third quarter of 2008 and more than double what analysts had predicted. As cnet.com points out, this increase comes after several rounds of layoffs totalling 2,000 jobs.
CEO Carol Bartz had this to say about the results:
“With revenue coming in above our guidance and flat sequentially, we had a solid third quarter that signals our major businesses have stabilized. With new products like Yahoo! homepage, our brand revitalisation campaign and expansion in the Middle East through maktoob.com, our execution is improving and we’re focused on what we do best — being the centre of people’s online lives.”
“In the third quarter we saw strength in key areas of our business,” added Yahoo! chief
financial officer Tim Morse. “Our efforts to reposition Yahoo! are still in the early stages, but we’re confident that our investments in the business will enable us to capitalise on growth opportunities as the economy recovers.”