Yahoo continues to shrink
Even a year after Marissa Mayer took the helm at Yahoo, the company is still grappling with a shrinking business. In the second quarter, the Internet veteran's revenue fell 7 percent to $1.1 billion.
In particular, revenues from graphic ads declined compared to the same period last year; text ads in Internet search also yielded less money. Group CEO Mayer nevertheless expressed satisfaction at the company's headquarters in Sunnyvale, California, on Tuesday: "I'm encouraged by Yahoo's performance in the second quarter." Because it was able to significantly reduce costs at the same time, so that in the end the profit rose by 46 percent to 331 million dollars.
Mayer loosened the ties to partner websites. These provide an additional stream of users, but also demand a share of the advertising revenues generated. Excluding traffic acquisition costs (TAC), revenue was almost stable. Moreover, Yahoo had to spend less money on corporate restructuring. By contrast, expenditure on new products increased.
The former Google manager has set out to make Yahoo a major player in the Internet business again. She has bought 17 companies since the beginning of her tenure. The blog platform Tumblr was the most expensive acquisition at $1.1 billion. Yahoo's share price has risen by about three quarters since she took office. But investors were less taken with the interim results, with the stock falling 2 percent in after-hours trading. (SDA)
