Yahoo! shares rise as profits double for first quarter of 2005

by Staff, Brand Republic 20-Apr-05, 15:00

NEW YORK - Yahoo! saw its share price rise after reporting that profits more than doubled during the first quarter of the year, leading analysts to raise forecasts for the company's performance in 2005.

Yahoo!'s marketing services revenues, which include advertising and listings, crossed the billion-dollar mark for the quarter, up 54% on last year to $1.03bn (£538.6m).

Shares in the internet company, traded on the Nasdaq in New York, rose by 4.6% to $34.75 on Wednesday morning after Yahoo! reported that its earnings for the first quarter of the year stood at $205m (£107m), compared with $101m in 2004. Revenues rose by 55% on the same period last year to $1.17bn.

The Bank Of America increased its earnings forecast for the bank from 53 cents a share to 56 cents, after the company said that it was in a good position to capitalise on the increasing use of the internet by marketers.

Terry Semel, chairman and chief executive officer, Yahoo!, said: "We are on the cusp of witnessing a significant increase in engagement of consumers on the internet and believe we are best positioned to capitalise on the many opportunities to which we are exposed."

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