Feeds

What! is! the! point! of! Yahoo?! To! sell! more! and! more! ads! says! CEO! Mayer!

2014 not as bad as 2012, says Marissa as sales slide further

The Power of One Infographic

Yahoo! execs are disappointed but optimistic as the web biz was once again unable to turn around declining revenues in its most recent quarter.

The Purple Palace reported revenues of $1.08bn, down four per cent from the previous year's quarter and below analyst estimates. Earnings per share were up five per cent to $0.37, but still below estimates.

Display advertising revenues decreased by 8 per cent, and the amount of revenue collected per ad sold was down 24 per cent.

"Our top priority is revenue growth and by that measure, we are not satisfied with our Q2 results," CEO Marisa Mayer said in announcing the returns on a conference call.

"While several areas showed strength, their growth was offset by declines."

Though Mayer was not upbeat about this quarter's returns, the Yahoo! boss noted that overall the company is in far better shape than it was in previous years as the advertising giant has struggled with a string of failed turnaround pushes.

"Transformation is not a singular event, it is a series of events and quarters," Mayer offered.

"Two years ago, Yahoo! lacked a clear vision for the future and some of the key fundamentals to build a vibrant growth business."

Mayer hopes to ramp up sales of premium ads, and spaff out more branded content and stuff for mobile devices. She noted that the company's Gemini platform brings in half of Yahoo!'s mobile display revenues, and for the first time since 2010, the company is able to serve its own US mobile search ads.

The aimless biz, which owns Flickr, is also optimistic about its continuing stake in Alibaba. The Chinese giant has been a huge revenue generator for Yahoo! since co-founder Jerry Yang pushed for the investment, and was considered a bright spot in Yahoo!'s darkest days.

Faced with the possibility of having to divest itself after the Alibaba IPO, Yahoo! said it agreed to deals that will cut the number of shares it will offer up for sale from 208 million to 140 million.

For Yahoo!, the deal will not only mean that it gets to keep more of its lucrative stake should Alibaba continue to increase in value, but would also help keep down what is expected to be a hefty tax liability to be incurred from the payout on the stock sale. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
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
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
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
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
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.