Internet portal giant Yahoo! has reported second-quarter revenues of US$1.57bn, down 13pc on the same quarter in 2008.
Although the results were broadly in line with expectations, Yahoo! shares fell upon the news that the company expects lower revenue for the third quarter.
Net revenue for the quarter was US$1.14bn, down 15pc from the US$1.35bn reported a year earlier.
However, despite the fall in revenue, Yahoo!’s recent aggressive cost-cutting efforts appear to have taken effect, with third-quarter profits growing almost 8pc and beating analysts’ expectations.
Net income for the quarter was US$141m, down 15pc from the US$1.35bn reported a year earlier.
“I’m pleased with our results this past quarter. We established a clear, simple vision to be the centre of people’s lives online, and we’re backing that vision with important initiatives to create ‘wow’ experiences for our users,” said Yahoo! chief executive officer, Carol Bartz (pictured).
“We’re confident that this vision will put us on the right path to growth and profitability long term."
Bartz also said that Yahoo!’s revamped homepage, which was launched earlier this week, was “a perfect example of our efforts to create innovative products aimed at increasing user engagement while offering the most compelling advertising proposition in the industry.”
“Even in this challenging economic environment, Yahoo! had a solid quarter, reflecting the strength of our offerings for our users and advertisers,” said Yahoo! chief financial officer, Tim Morse. “
Yahoo! forecast revenue of US$1.45bn to US$1.55bn for the third quarter.
Pictured: Yahoo! chief executive officer, Carol Bartz
Article courtesy of businessandleadership.com