Feeds

Yahoo! revenues! dip! 4! per! cent!

Microsoft marriage pains

Securing Web Applications Made Simple and Scalable

Yahoo! revenues dipped 4 per cent during its fourth quarter as the company adjusts to life as a Microsoft spouse.

During the quarter ending December 31, Yahoo!' pulled in $1.2bn if you exclude traffic acquisition costs, down from $1.26bn in the same quarter last year. The company said the 4 per cent drop was due in large part to its search revenue–sharing agreement with Microsoft.

Nonetheless, the company's fourth quarter profits climbed to $312 million, a 104 per cent increase over the previous year. "We just completed a very encouraging quarter and year for Yahoo! We made substantial strides to improve profitability," CEO Carol Bartz said during a conference call with reporters and analysts, pointing out that the company doubled not only operating income but also operating margins, earnings per share, and return on invested capital.

And Bartz continues to cut costs. Before unveiling its fourth quarter financial results on Tuesday afternoon, Yahoo! announced that it's cutting another one per cent of its staff, or roughly 135 employees. "To increase profitability," Bartz said, "we have to be focused and efficient."

The move is in stark contrast to the news that emerged from Mountain View on Tuesday. Google told the world that in 2011 it would set a new hiring record, topping the 6,000 hires it made in 2007. In 2010, the search giant added about 4,000 employees.

Yahoo! had previously said that its Q4 revenues would be down due to its revenue-sharing deal with Microsoft and the decision to offload its Zimbra and HotJobs units. If you exclude these items, Bartz said today, revenues would have climbed 2 per cent.

"As we said last quarter, this is all part of our plan to turn the company around," Bartz said.

Though Yahoo!'s underlying search and search-ad infrastructure is now operated by Microsoft, Bartz reiterated that search is still an "important part" of the company's business, and that she expects to see search revenue grow by the end of the year. "Whenever you make big changes, as we're doing with our search alliance, it takes some time for the marketplace to adjust," Bartz said.

Meanwhile, the company's display-ad business is growing. According to Bartz, display-ad dollars grew 16 per cent over the previous year and 27 per cent over the previous quarter. On the whole, display revenue for 2010 grew 17 per cent over 2009. ®

Build a business case: developing custom apps

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
Price cuts, new features coming for Office 365 small biz customers
New plans for companies with up to 300 staff to launch in fall
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.