Feeds

Yahoo! balance! sheet! bulked! by! Alibaba!

Investors not upset by ad-slinging biz and cash stash sinking

High performance access to file storage

Yahoo! has released its third-quarter results, and the numbers aren't pretty.

The purple palace managed to drag $US1.14bn through the door, but that's five per cent less than the figure for 2012's third quarter. Earnings before interest, taxes, depreciation and amortization were $331 million, a 19 per cent drop compared the Q3 2012.

Worse still, the company had to work harder to make that lesser amount of cash, because it sold fewer ads at lower prices than it has done in the past. Search revenue was up $8m, but the company's cash stash now stands at $3.2 billion, down from the $6 billion in the kitty on December 31, 2012.

Plenty of that decrease can be attributed to acquisitions and share buybacks. The latter have kept shareholders smiling because the company's shares have gone from around $15 to $33.38 at the close of today's trading. Plenty of that increase is attributable to Yahoo!'s 24 per cent stake in tat bazaar Alibaba, which will soon go public. When the bazaar does so, Yahoo! stands to cash in, which could mean more stock buybacks at prices above those investors paid for their shares.

The company has also changed its arrangement with Alibaba so it does not have to sell as many shares once the bazaar goes public. That's a good thing because it means Yahoo! can hang on to more shares and sell them once Alibaba's value increases.

Investors are therefore not terribly fussed by the news of hard times in ad-slinging.

Yahoo! CEO Marissa Mayer isn't fussed either, instead preferring to talk up acquisition-and-new-service-derived increases in user numbers, plus deeper engagement with those who stop by Yahoo!'s various properties. Presumably those improvements will make ad sales easier in future.

Mayer also outlined plans to do better in mobile, noting audience increases among handheld device-wielders and declaring their efforts “under-monetised”. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.