Internet giant Yahoo! has reported a doubling of profits for its third quarter, despite a 12pc fall in revenues, and said its key businesses are stabilising.
Net income per diluted share for the third quarter of 2009 was US$0.13, compared to US$0.04 for the third quarter of 2008.
Revenues for the third quarter were US$1.58 billion, which represents a 12pc fall on the same quarter a year previous and just slightly above that reported for the second quarter of 2009. The company said Q3 revenues had come in above its guidance.
However, owing to the fall in revenues, only a serious amount of cost-cutting during the quarter ensured the company turned a profit as the company got rid of unprofitable assets and cut staff costs.
“With revenue coming in above our guidance and flat sequentially, we had a solid third quarter that signals our major businesses have stabilised,” said Yahoo! chief executive officer Carol Bartz.
“With new products like Yahoo! homepage, our brand revitalisation campaign and expansion in the Middle East through Maktoob.com, our execution is improving.”
Looking at growth
“In the third quarter we saw strength in key areas of our business,” said Yahoo! chief financial officer Tim Morse. “Our efforts to reposition Yahoo! are still in the early stages, but we’re confident that our investments in the business will enable us to capitalise on growth opportunities as the economy recovers.”
Yahoo! is expecting revenue for the fourth quarter of 2009 in the range of US$1.6 billion – US$1.7 billion, with income from operations expected to be in the range of US$135 million-US$155 million.
Article courtesy of businessandleadership.com
Photo: Yahoo! chief executive officer Carol Bartz.