Yahoo! has seen a boost in its income from operations by 10pc to US$242m in the fourth quarter of 2011, compared to US$220m in the fourth quarter of 2010, the digital media company reported.
However, revenue excluding traffic acquisition costs ("revenue ex-TAC") decreased 3pc from the fourth quarter of 2012 to US$1,169m.
"Yahoo! continued to make progress in the quarter with operating income increasing 10pc year-over-year," said Scott Thompson, Yahoo! CEO.
"In 2012, we will be aligning resources behind key areas of focus to enable us to move aggressively in market and grow our business, bringing innovative new products and experiences to both our users and advertisers."
Also down was Yahoo’s GAAP revenue, at US$1,324m for the fourth quarter of 2011, marking a 13pc drop from the fourth quarter of 2010.
Revenue ex-TAC decreased by 5pc from the same period of 2010 to US$4,381m for the full year ended 31 December 2011. The year-over-year decrease was primarily due to the revenue share related to the Search Agreement with Microsoft.
GAAP revenue was US$4,984m for the full year, a 21pc decrease from the same period of 2010, primarily due to the required change in revenue presentation related to the Search Agreement and the associated revenue share with Microsoft, Yahoo! said.
On the upside, income from operations increased 4pc to US$800m for the full year, compared to US$773m for the same period of 2010.
Net earnings per diluted share was US$0.24 in both the fourth quarter of 2011 and the fourth quarter of 2010.