Yahoo triples profit
The Internet company Yahoo posted an unexpectedly strong jump in profits in the third quarter. The company, which had recently been in deep crisis, more than tripled its net income to $186 million, up from $54 million a year earlier. However, Yahoo achieved this profit increase only through job cuts, cost-cutting measures, and the sale of shares. Revenue fell significantly once again.
In view of the advertising slump, turnover fell again by twelve percent to just under 1.6 billion dollars, as Yahoo announced on Tuesday after the US stock exchange closed. Since its peak a year ago, the Internet company has cut around 2,000 jobs to around 13,200. However, according to CFO Tim Morse, around 200 people have recently been hired again as announced.
Yahoo exceeded market estimates with its figures. In particular, profits and the forecast for the coming months were clearly higher. The share price rose by a good six percent in US after-hours trading. Since the beginning of the year, it has risen by around 40 percent to 17.17 dollars.
Yahoo has allied itself with Microsoft in the battle against the clear search engine market leader Google. Arch-rival Google has just posted another quarter of impressive growth during the crisis. Yahoo wants to use Microsoft's search technology. The alliance still has to be approved by the competition authorities. Microsoft had previously tried unsuccessfully to swallow Yahoo whole.
The internet company Yahoo now expects sales of between 1.6 and 1.7 billion dollars for the current fourth quarter. The operating result is expected to be between 135 and 155 million dollars.
Yahoo exceeded market estimates with its figures. In particular, profits and the forecast for the coming months were clearly higher. The share price rose by a good six percent in US after-hours trading. Since the beginning of the year, it has risen by around 40 percent to 17.17 dollars.
Yahoo has allied itself with Microsoft in the battle against the clear search engine market leader Google. Arch-rival Google has just posted another quarter of impressive growth during the crisis. Yahoo wants to use Microsoft's search technology. The alliance still has to be approved by the competition authorities. Microsoft had previously tried unsuccessfully to swallow Yahoo whole.
The internet company Yahoo now expects sales of between 1.6 and 1.7 billion dollars for the current fourth quarter. The operating result is expected to be between 135 and 155 million dollars.
