Yahoo! Q1 profit increases 28pc

18 Apr 2012

Increasing advertising revenue fuelled by improvement in Yahoo!’s search business bumped up the online media company’s first-quarter earnings by 28pc.

Revenue excluding traffic acquisition costs totalled US$1,077m for the first quarter of 2012, a 1pc increase from the same period last year.

Income from operations sank 11pc to US$169m, compared to US$190m in the first quarter of 2011.

GAAP revenue amounted to US$1,221m, marking a 1pc rise from the same time a year ago.

Yahoo!’s net earnings per diluted share rose 38pc to $0.23, up from $0.17 in the first quarter of 2011.

“In the first quarter, Yahoo!’s results came in at the high end of our guidance range and beat consensus on revenue and profits,” said Scott Thompson, CEO of Yahoo!

“We also made changes to resize the organisation and establish a new leadership structure to quickly deliver the best user and advertiser experiences at scale.”

Yahoo! has established a new leadership structure, organising into three main groups — Consumer, Technology and Regions — in an effort to bring resources closer to users and advertisers.

The company has also benefitted from growth in the US online-ad market, which grew 23pc in the period, Bloomberg reported.