Yahoo profits rise 86% in 2010 to $1bn
Yahoo has nearly doubled its profits for the fourth quarter and reported 86% growth for the year following a period of heavy cost-cutting across the company.
Yahoo!: profits rise 86% in 2010
As profits rose Yahoo cut another 100 staff. The latest job cuts brings to more than 700 the number who have been axed in the past six weeks leaving Yahoo with 13,600 staff worldwide.
Over the whole calendar year, Yahoo generated an income, before tax, of $1bn helped by pre-tax profits doubling to $227.6m (£143.4m) in the last quarter.
Revenue for the digital specialist was down 4% for the quarter to $1.2bn and dipped 2% for the year to $6.3bn. The revenue drops were primarily attributed to its search agreement with Microsoft.
Under the agreement, Bing powers Yahoo search in the US and Canada, giving Microsoft a 12% share of revenue generated.
Revenue for search fell 18% to $388m for the quarter and it expects it to decline further over the next year as Yahoo extends the Microsoft search agreement to its other markets.
Display advertising revenue for the quarter was up 16% to $567m.
As part of its drive for profitability, Yahoo made hundreds of redundancies in December 2010 and confirmed a smaller round of lay-offs, in the region of 130 employees, prior to the results being announced yesterday (26 January).
Carol Bartz, chief executive at Yahoo, said: "We just completed a very encouraging quarter and year for Yahoo, where we saw our plans to turn around the company gain momentum."
Yahoo still continues to lose share to its rivals, however. Last week, Google reported a 26% increase in revenue to $8.4bn (£5.3bn) for the forth quarter, with a rise in net income to $2.5bn (1.6bn).
This article was first published on mediaweek.co.uk
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