Feeds

Yahoo! flies high in Q3

Barnstorming quarter

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Yahoo! has posted strong Q3 results, with net income more than doubling to $65.3 million, thanks largely to the health of its marketing services sector.

Net revenues for the quarter were $356.8 million, up 43 per cent from the same period last year, when it brought in $248.8 million. One of the strongest engines for growth at the Internet giant was marketing service revenue, including sponsored search revenues, which soared more than 48 per cent on last year, reaching $254.1 million.

Terry Semel, chairman and CEO of Yahoo, pointed out that, compared to last year, the company saw double digit increases in each of its three line items -- marketing services, fees, and listings -- but both fees and listings were a distant second and third place compared to marketing services revenue. Revenues from fees for the quarter totalled $79.4 million, a 38 per cent increase on the same period last year.

The company says these increases were due to the increasing number of customers paying for services such as SBC Yahoo!, the DSL and dial-up Internet service Yahoo! offers with SBC Communications, personals and business and communications services.

Listings revenues, meanwhile, totalled $32.4 million, a 26 per cent rise year-on-year. Yahoo! attribute the growth in listings over the past nine-month period mostly to revenues from HotJobs, which the company acquired in February last year, as well as increases in search and marketplace services revenues.

"Our client base really says it all: we are supported by hundreds of blue chip traditional marketers, thousands of small and medium-sized businesses, and millions of consumers around the world," said Susan Decker, CFO of Yahoo! Third quarter success augurs well for future progress, she added.

Yahoo! had 4.2 million unique paying subscribers at the end of the third quarter, which it expects to raise by between half a million and 700,000 in the current quarter.

In its outlook for the fourth quarter, Yahoo has forecast operating income before depreciation and amortisation of between $130 million and $150 million. It expects its fourth quarter revenue to fall within a range of $462 million and $502 million, excluding traffic acquisition costs, representing the costs of its recent acquisition of Overture. Yahoo! on Tuesday announced that it had completed its purchase of the commercial search company, which claims relationships with more than 100,000 advertising clients.

For the full fiscal year, Yahoo! raised its guidance and is now expecting operating income (before depreciation and amortisation) of $428 million to $448 million, on revenues of between $1.42 billion and $1.46 billion. The company had previously forecast operating income of no more than $400 million on revenue of up to $1.31 billion.

© ENN

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.