17 October 2007

Yahoo! Q3 revenue up 12% on last year

According to Yahoo!'s third-quarter results, the internet giant's revenue stood at $1.8 billion, a 12 per cent increase on the same period last year.

Its net profit, however, dipped slightly to $151 million from $159 million in 2006.

Chief executive officer and co-founder of the search engine provider Jerry Yang commented: "Over the past three months, we conducted a thorough review of our business and the marketplace.

"We have made key strategic decisions to invest in and grow our large communities of users, advertisers, and publishers."

The company is focusing on three "big multi-year objectives", including becoming the starting point for most consumers on the internet, being the "must buy" for the majority of advertisers and delivering industry-leading platforms, he added.

Yahoo! chief financial officer Blake Jorgensen stated that the firm is encouraged by the "signs of improvement" in the business and believes its strategy and investments will "position [it] to capture the significant opportunities on the horizon and create long-term shareholder value".

However, earlier this month, analyst Jeffrey Lindsay of global wealth management company Sanford C Bernstein suggested that Yahoo!'s recent business moves, including its purchase of internet advertising firm BlueLithium, may not be bold enough to significantly boost its success.

He recommended that Yahoo! should outsource its paid service to Google, cut a quarter of its staff and revamp its advertising business.

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