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Yahoo posts US$286M first-quarter net profit

18 April 2012 11:48 (UTC +04:00)

Baku - APA-Economics. Yahoo! Inc., the largest U.S. Web portal, reported earnings and sales that exceeded estimates as it benefited from growth in the online advertising market under newly appointed chief executive officer Scott Thompson.

First-quarter revenue, excluding sales passed on to partner sites, rose to US$1.08-billion, Sunnyvale, California-based Yahoo said in a statement today. That compares with the average US$1.06-billion analyst estimate compiled by Bloomberg. Sales in the current period will be US$1.03-billion to US$1.14-billion, compared with US$1.08-billion projected by analysts.

Thompson, who took over as CEO in January, announced job cuts and reorganization earlier this month in a bid to increase profit and reverse a sales slump. Yahoo, while lagging rivals such as Google Inc. and Facebook Inc., is benefiting as corporations devote more of their advertising dollars to the Internet. The U.S. online ad market grew 23% in the first quarter from a year-ago, according to eMarketer Inc.

â€œYou should be able to get some benefit from the general ad spend,â€ said Martin Pyykkonen, an analyst at Wedge Partners Corp. in Greenwood Village, Colorado. â€œAdvertising is still very good.â€