Net profits at internet company Yahoo! more than doubled during the second quarter, but more modest revenue growth disappointed investors.
Yahoo! reported net income for the quarter of US$213m against the US$141m earned during the same quarter in 2009.
Revenues meanwhile rose 2pc during the quarter to US$1.6bn. This modest revenue growth is in direct contrast to the 24pc revenue growth reported last week by internet rival Google during its second quarter.
Yahoo! also reported net revenues, which excludes the revenue the company shares with its website partners, of US$1.13bn for the quarter, that were below analysts’ expectations of US$1.16bn.
Net income per diluted share for the second quarter of 2010 was US$0.15, compared to US$0.10 in the second quarter of 2009.
Yahoo! said display advertising on its owned and operated sites continued to perform well, growing 19pc in the quarter compared to the second quarter of 2009.
“We’re pleased that we continued to deliver strong operating income and margin expansion,” said Yahoo! CEO Carol Bartz. “Our search fundamentals are improving and we posted another quarter of healthy display advertising growth.”
Article courtesy of Businessandleadership.com