Internet portal giant Yahoo, which is in the process of creating 400 jobs in Ireland, this morning revealed that first-quarter profits fell by 22pc on higher operating expenses and employee stock option costs.
This is despite the fact that sales are surging ahead due to phenomenal growth in online advertising.
The company this morning revealed that net income for the three months ended 31 March fell to US$159.9m from US$204.6m last year.
Profits were hit by stock option expenses of US$71m, compared with US$6m a year ago.
However, sales rose by 34pc to US$1.1bn in line with analyst expectations. Revenue from the competitive market for internet search advertising rose 35pc to US$1.38bn as the medium grows in popularity amongst businesses and consumers.
Revenues in the company’s fee-based services business, which targets broadband services in alliance with ISPs and telecom companies, rose 25pc to US$186m.
In February last year the IDA succeeded in attracting Yahoo to Dublin where it will create 400 jobs at its European headquarters.
By John Kennedy