Yahoo cuts revenue but increases profits
Posted: Sat Jan 18, 2025 9:11 am
Yahoo's second-quarter revenue fell 13 percent from the same period in 2008 due to a sharp drop in advertising spending, which caused its shares to fall more than 2 percent. However, the company's profits rose to $141 million from $131.2 million in the same quarter in 2008. The profit growth was due to severe cost-cutting measures bc data philippines imposed by CEO Carol Bartz.
The company's net income came in at $1.57 billion (€1.107 billion), slightly below analysts' estimates. Yahoo reported that search advertising revenue fell 15%, while display advertising revenue was 14% lower than the same period last year.
The outlook for the next quarter is no more optimistic, with advertising revenue expected to continue to decline. Ross Sandler, an analyst at RBC Capital Markets, said: “We are in challenging times across all advertising-related sectors, including online” adding that “these people are being disproportionately hit by overexposure to premium dropdowns, a particularly weak area.”
The company's net income came in at $1.57 billion (€1.107 billion), slightly below analysts' estimates. Yahoo reported that search advertising revenue fell 15%, while display advertising revenue was 14% lower than the same period last year.
The outlook for the next quarter is no more optimistic, with advertising revenue expected to continue to decline. Ross Sandler, an analyst at RBC Capital Markets, said: “We are in challenging times across all advertising-related sectors, including online” adding that “these people are being disproportionately hit by overexposure to premium dropdowns, a particularly weak area.”