The third quarter of 2011 has turned out to be a lackluster one for web portal Yahoo!, with the company reporting a decrease in revenue.
Revenue excluding traffic acquisition costs came in at US$1,072m for the third quarter of 2011, a 5pc decrease from the same period last year. Income from operations decreased 6pc to US$177m, compared to US$189m in the third quarter of 2010.
The year-over-year decreases were primarily due to the revenue share related to the Search Agreement with Microsoft, Yahoo! said.
GAAP revenue was US$1,217m for the third quarter of 2011, a 24pc decrease from the same time last year, which Yahoo! attributes to the required change in revenue presentation related to the Search Agreement and the associated revenue share with Microsoft.
Net earnings per diluted share decreased 21pc to $0.23 in the third quarter of 2011, compared to $0.29 in 2010’s third quarter.
“We’re pleased that revenue, operating income and EPS were all above consensus this quarter,” said Tim Morse, CFO and interim CEO, Yahoo! “My focus, and that of the whole company, is to move the business forward with new technology, partnerships, products, and premium personalised content — all with an eye toward growing monetisation.”
Yahoo!’s 2011 third-quarter financial results at a glance
|Quarterly results (in US millions, except percentages and per share amounts)|
|Q3 2010||Q3 2011||Percent Change|
|Income from operations||$189||$177||(6)pc|
|Net earnings per diluted share||$0.29||$0.23||(21)pc|