Yahoo! profits treble despite falling sales
Yahoo! profits have trebled for third quarter despite revenue being down
Wednesday, 21, Oct 2009 10:43
By Sarah Garrod
Yahoo! has seen its profits in the third quarter more than treble, despite a 12 per cent decline in revenue.
The company said its cost-cutting moves had helped to earn $186 million (£113.6 million) compared to $54 million (£32.6 million) for the same quarter last year.
Yahoo! reduced outgoings by cutting 2,000 jobs over the last year, as well as the sale of Alibaba.com. But the company said it was still struggling for advertising revenue since the global downturn.
Recently the website was given a refresh which the company said it hoped would bring in better traffic. In July, Microsoft and Yahoo! agreed a deal that will see Yahoo! websites use both Microsoft's search technology and search advertising.
The Californian-based company's results were much better than expected, and Yahoo!'s share price gained 5.94 per cent to 18.19 dollars in after-hours electronic trading in New York.
Carol Bartz, chief executive, said: "With revenue coming in above our guidance and flat sequentially, we had a solid third quarter that signals our major businesses have stabilised."