Yahoo’s Net Profit Rises 50.8% In 1H But Revenues Disappoint
Yahoo’s net profit rose 50.8% in the second quarter this year, to $213.3 million, close to analyst expectations, but revenues were not up to par, because of decreases in the expenditure of advertising companies, which determined a 6% decline in company shares, Reuters informed.
The less than expected revenues raised new question marks regarding Yahoo’s efforts to consolidate its rising sales trend, as well as regarding the situation in the online advertising market.
Although the company managed to improve its earnings, as well as its profit marjin, investors and managers focused on revenues.
Yahoo boss Carol Bartz said the company’s main objective is to boost revenues, with a strategy that involves adding more video services and online networking services, in order to bring in more users.
Yahoo’s overall revenues rose slightly in the second quarter, compared to the same interval of the previous year, to $1.6 billion from $1.57 billion, while net profit rose from $141.4 million to $213.3 million.
Net revenues, however, thish exclude sales unfolded in association with partnering sites, was $1.13 billion, while analysts expected th number to reach $1.16 billion.
Yahoo shares dropped 6.1% in the futures transactions unfolded on the Nasdaq market, after the conclusion of Tuesday’s trading session and the presentation of results.
