Yahoo's Mayer: 'We are not satisfied with our Q2 results'

Marissa Mayer: chief executive of Yahoo
Marissa Mayer: chief executive of Yahoo

Two years after Marissa Mayer became chief executive at Yahoo, sluggish advertising revenues still continue to dog the internet company, leading to its worst quarterly performance since she took over.

Yahoo's revenue from its display advertising business fell 8% last quarter to $436 million (£255m), compared with the same quarter a year ago, as it continues to lose ground to market leaders Google and Facebook.

Overall, Yahoo's revenue fell 4% last quarter, year on year, to $1.08 billion, operating income dropped 72% to $38 million (£22 million), largely attributed to one-off restructuring costs, and net earnings for the second quarter were down 19%, to $270 million (£158 million).

Mayer said: "Our top priority is revenue growth, and by that measure, we are not satisfied with our Q2 results. While several areas showed strength, their growth was offset by declines."

There was positive news surrounding Alibaba, the private Chinese ecommerce company Yahoo has invested a stake in, which is preparing for a much anticipated initial public offering.

Yahoo, which holds a 23% stake in Alibaba, now has to sell only 140 million shares in the IPO, down from the previous 208 million.

Conservative estimates expect Alibaba will be valued at $150 billion (£88 billion) when it goes public, more than five times Yahoo’s current $35 billion (£20 billion) market valuation.

0
SHARES
Comment

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs
Thousands of jobs across advertising, creative, marketing and media
  • Head of Planning Competitive Salary, negotiable for the right candidate Accord Group Limited, Central London WC1A
  • CRM - Campaign Manager £32,000 - £38,000 PLUS bonus & company benefits Comparethemarket.com, Peterborough, Cambridgeshire
  • Partnerships Manager £30,000 - £55,000 PLUS bonus & company benefits Comparethemarket.com, Peterborough, Cambridgeshire

Just published

Feel you're missing out?

GET THE
BRANDREPUBLIC
BULLETINS
Sign up

The Wall Blog

From our partners