Don’t miss the latest developments in business and finance.

Yahoo posts flat Q2 revenue as Mayer steps into CEO role

Shares of Yahoo rose 10 cents to $15.70 in after-hours trading on Tuesday

Image
Reuters San Francisco
Last Updated : Jan 24 2013 | 2:11 AM IST

Yahoo Inc, looking to revive its fortunes with Monday's hiring of a new chief executive from Google Inc, reported flat net revenue and a slight decline in profit during the second quarter.

Yahoo reported earnings on the first day of work for new CEO Marissa Mayer, a longtime Google executive who is Yahoo's third chief in twelve months. Mayer is not expected to participate in Tuesday's post-earnings release conference call.

Shares of Yahoo rose 10 cents to $15.70 in after-hours trading on Tuesday.

Net revenue, which excludes fees paid to partner websites, was $1.081 billion in the three months ended June 30, compared to $1.076 billion at this time last year.

Yahoo's second-quarter net income was $226.6 million, or 18 cents a share, down slightly from roughly $237 million, or 18 cents a share, in the year ago period.

Excluding certain items, Yahoo said it earned 27 cents a share, above the 23 cents a share expected by analysts.

More From This Section

Mayer faces a significant challenge in trying to rejuvenate the ailing Web pioneer which has seen its revenue growth stall as consumers increasingly spend time on social networking websites such as Facebook and Twitter.

Yahoo said its revenue from online display ads increased 2% year-on-year to $535 million, while its search revenue decreased 1% to $461 million.

Mayer's hiring as CEO caps a tumultuous year at Yahoo. In May, Scott Thompson resigned as CEO after less than 6 months on the job as a controversy flared up over his academic credentials.

Thompson replaced the outspoken and occasionally foul-mouthed Carol Bartz, who was fired in September after failing to revitalize Yahoo.

 

Also Read

First Published: Jul 18 2012 | 2:20 AM IST

Next Story