Yahoo earnings beat expectations as ad revenues rise |
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Published
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Thu, 20 Oct 2005 00:35
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CALIFORNIA: Yahoo! Inc. yesterday beat Wall Street expectations with its third quarter results, posting a 47 percent increase in revenues at $1.33 billion.
Yahoo said net revenue for the quarter ending September, excluding traffic acquisition costs was up 42 percent at $932m (£530m). Traffic acquisition costs are the revenues that Yahoo shares with hundreds of Yahoo’s advertising partners.
Despite the encouraging results, the world’s largest Internet media company resents that its growth pace cannot match that of its biggest rival Google.
Yahoo once held stocks of the search engine giant but offloaded the investment last year and used the $129 million it gained to fund other ventures such as Alibaba.com the Chinese e-commerce portal.
In the third quarter, Yahoo’s net income $253.3 million remained unchanged from same quarter last year.
On the downside, Yahoo’s market value has been on the decline this year whereas Google’s has advanced 56 percent. Yahoo also declined in the search engine market, standing 29.7 percent (30.6 percent last year). This loss in search engine business has restrained Yahoo’s growth.
Google meanwhile advanced from 36.1 percent to 37.3 percent.
Yahoo’s fourth quarter outlook is upbeat in line with current growth and expectations. Revenue minus trade acquisition costs are expected to be between $1.03 billion to $1.08 billion; operating income could be between $452 million and $482 million. The firm is now considered the world’s largest Internet firm with a growing subscriber base. At third quarter ending the firm had 1.3 million paying subscribers a growth of 50 percent from last year.
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