Internet giant Yahoo Inc has reported a staggering net income of $3.16 billion in the three months ended September 30, 2012 largely due to sale of part of its stake in Chinese e-commerce portal Alibaba Group Holding Ltd. In the year-ago period, the company had a net income of $293.29 million, Yahoo said in a statement.

However, the company’s revenue fell by 1% to $1.20 billion in the July-September quarter.

Marissa Mayer, who joined Yahoo in July as CEO after serving a top Google executive, said, “Yahoo had a solid third quarter, and we are encouraged by the stabilisation in search and display revenue. We’re taking important steps to position Yahoo for long-term success, and we are confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.”