Yahoo! reports lower revenues but higher profits

Yahoo! reports lower revenues but higher profits

One of the most recognized brands on the Internet; Yahoo! has posted a higher second-quarter profit on continued strong advertising. However, the company suffers from dropping revenues and could not match the market expectations. The company posted a net income of $754.7 million, or 51 cents a share, excluding traffic acquisition costs. However, this included the revenues from the sale of an investment that Yahoo executives declined to specify.

The revenues were at $1.25 billion, a 51 percent increase over the $832.3 million it reported a year ago. If the amount paid to marketing partners is included, the figures drop to $875.1 million, which is below the market expectations of $882.7 million. These figures resulted in a drop of 10% in the share prices of the company in the stock markets.

The company now aims to improve upon their search engine market, which remains one of the most profitable businesses through online advertisement on search results. They are planning to offer contextual-targeted opportunities and also expand their overseas market. The company has also expressed the desires to acquire companies whenever required. This coming year should be interesting for the company and its stockholders as it works hard on competing with Google.