Feeds

Yahoo! loses! revenue!

'This is good, and at the same time, unsatisfactory'

The essential guide to IT transformation

Yahoo!'s revenue fell slightly compared to last year, thanks to rubbish sales of US display adverts.

The portal failed to see much joy from its search agreement with Microsoft.

Total revenue was $1.07bn for the three months ended 30 June 2011, a 5 per cent drop on the $1.12bn it made in the same quarter of 2010. Income from operations was $191m compared to $175m in the second quarter of 2010. Carol Bartz said the results were "a mix of good, encouraging, and at the same time, unsatisfactory."

She said there were two main issues: the ongoing row over Alipay and poor performance of display ads.

Bartz said the company was making progress over Alipay but accepted that "until every word is finalized and every document is signed, we're simply not done".

Revenue from display, excluding payments made to partners sites for traffic, was up 5 per cent globally but down in the US, the lion's share of Yahoo!'s market.

European revenues were up 27 per cent; Asia Pacific was up 20 per cent. Bartz said the first half of the quarter in US was reasonable, but that the second half had seen demand fall.

Bartz blamed fallout from the company's reorganisation of its sales team, which led to more people than expected leaving the company. She said it was not about the economy, although that hadn't helped, nor about competition or engagement.

She said Yahoo!'s sales team was now back up to full strength but "many of the account execs are new to the roles, and it will take time for them to get up to speed on their new books of business". She said this made it unlikely that Yahoo! would hit display targets for the full year target of between 13 and 16 per cent growth.

Search revenues, excluding TAC (traffic acquisition costs), were down 15 per cent to $371m. Yahoo! loses its guaranteed revenue from its search deal with Microsoft in the first quarter of 2012.

A transcript of Bartz's Q&A is available from SeekingAlpha here.

Yahoo's numbers are available to download here. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.