Yahoo Q2 profit soars; revenue falls
Internet major Yahoo has reported a 51 per cent jump in net income at USD 213 million for the April- June quarter of this year, on account of growth in display advertising.business Updated: Jul 21, 2010 16:20 IST
Internet major Yahoo has reported a 51 per cent jump in net income at $213 million for the April-June quarter of this year, on account of growth in display advertising.
In the year-ago period, the company had a net income of $141 million, Yahoo said in a statement.
The company's revenue rose to $1.6 billion during the second quarter ended June 30, 2010 from $1.57 billion in the same period last fiscal.
Yahoo's second quarter result is not overwhelming as the company has registered a revenue growth of 2 per cent while its rival Google 24 per cent.
During the second quarter, Yahoo's revenue from search-based advertising fell 8 per cent, while display advertising, including banner ads grew 19 per cent.
However, Yahoo Chief Executive Officer Carol Bartz said, "our search fundamentals are improving and we posted another quarter of healthy display advertising growth."
Yahoo said its revenue for the third quarter is expected to be in the range of $1.57 billion to $1.65 billion.
The company's operating margin expanded from 4.8 per cent in the second quarter of 2009 to 11 per cent during the same period this fiscal.
"We are pleased that we continued to deliver strong operating income and margin expansion," Bartz added.
In terms of geographical location, Asia Pacific region has recorded a revenue of $327.65 million during the quarter under review from $236.56 million in the year-ago period. While revenue declined in the US to $1.13 billion in Q2 of this year to $1.18 billion.