Yahoo triples quarterly profits with new results

Yahoo has reported profits for the quarter of US$310 million (A$332 million), almost tripled what it made this time last year.

The company reported that revenues for the quarter rose one percent to US$1.6 billion (A$1.71 billion). The company’s balance sheet benefitted from payments by Microsoft, as arranged in their deal last year, and returns from the sale of Zimbra, as well as a recovery in the advertising market.

"We had a good quarter, delivering income from operations higher than our outlook," said Yahoo chief executive officer Carol Bartz.

"Thanks to our efforts, our search share has stabilized, and we grew display advertising by 20 percent year over year. More importantly, guaranteed display grew by 24 percent as advertisers took advantage of the science, art and scale that only Yahoo can offer."

Bartz said that she believed the company’s share of the search market had stabilised over the last quarter but noted that revenues from search were down 14 percent.

Nevertheless Bartz’s cost-cutting programme has yielded concrete results. The company has cut its operating costs by US$76 million (A$81.6 million) over the year, boosting operating income by 87 percent.