Wednesday, 19 Octorber 2011
Yahoo’s net earnings dropped 26% to $293m (£185m) during the quarter ending 30 September, compared to $396m (£251m) in 3Q10, attributed to its search alliance with Microsoft and falling display ad revenues.
Total revenue for the period was $1.2bn, (£760m) down 24% year on year, with search revenues dropping to $467m (£295m) , compared to $839m (£531m) in 3Q10.
Meanwhile, display ad revenues fell to $502m (£317m) during the period, compared to $514m (£325m) in 3Q10.
The company attributed the sharp dip in its search revenues to its search alliance implemented in the UK during the last quarter, which requires Yahoo to divide earnings with Microsoft.
Interim Yahoo CEO Tim Morse described the display ad market as “flat year over year” and “below our expectations”, however he did note that premium display ad revenues were up year on year. Although this was offset by declines in “non-premium display revenue”.
Yahoo’s revenue from its European operations rose to over $96m (£61m) during the quarter, compared with $84m (£53m) in 3Q10. The company also forecast that its fourth-quarter revenues would be relatively flat within the range of $1,235m (£781m).
Morse also refused to offer any indication on Yahoo’s future given its ongoing “strategic review” during an earnings call.
“Let me reiterate what the board has said about its comprehensive strategic review process. The board is actively looking at the full range of options available to return the company to a path of robust growth… when it has something to announce, it will do so. That will take time,” he said.
Speculation over a potential Yahoo takeover from AOL has persisted since the company axed its former CEO Carol Bartz during the last quarter.