Yahoo posts profit largely gained from cost-cutting
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Yahoo Inc. beat analyst expectations and reported that second-quarter net income rose 8% to $141 million from $131 million during the same period in 2008.
The Web portal, which today is launching a redesigned homepage, saw earnings per share increase by 10 cents, surpassing the eight-cent increase that analysts had predicted.
Revenue was down 13% to $1.6 billion from $1.8 billion, though the Sunnyvale, Calif., company said currency fluctuations were the main cause for the decline.
The increase in profit largely appears to have stemmed from cost cuts, with Yahoo trimming operation expenses by nearly $150 million since the second quarter of 2008.
“I’m pleased with our results this past quarter. We established a clear, simple vision to be the center of people’s lives online, and we’re backing that vision with important initiatives to create ‘wow’ experiences for our users,” Yahoo Chief Executive Carol Bartz said in a statement. “We’re confident that this vision will put us on the right path to growth and profitability long-term.’
Immediately after the report, which was released after regular trading closed, Yahoo shares lost 66 cents to $16.09, a 4% decrease.
-- David Sarno