Yahoo Net Income Triples on Ad Revenue
Internet directory Yahoo Inc.’s third-quarter net income more than tripled as advertisers paid more to be seen on the No. 1 Web destination.
Yahoo reported net income of $14.9 million, or 5 cents a share, for the three months ended Sept. 30, compared with $4.25 million, or 1 cent, a year ago.
The company reported operating income of $40.41 million, or 14 cents a share, compared with $6.92 million, or 2 cents a share, for the same period a year ago.
The operating results, which exclude costs from the company’s acquisition of Broadcast.com Inc., exceeded the 9-cents-a-share average estimate from First Call Corp. They also beat an unofficial “whisper” estimate of 12 cents a share.
Revenue rose to $155.1 million from $66.3 million a year ago.
“During the quarter, we achieved record levels in terms of revenues, consumer audience and advertising and merchant clients,” said Tim Koogle, Yahoo’s chairman and chief executive.
Koogle has been pushing the company into international markets while beefing up functions to attract users and advertisers. The company has added online bill payment, digital music and electronic greeting cards to its free e-mail, stock quotes and chat rooms.
The company launched operations in China and began offering online auctions in seven countries, including Japan and Germany. Yahoo said it derived about 10% of its revenue from overseas operations.
“The Yahoo machine continues to work,” said Safa Rashtchy, an analyst with U.S. Bancorp Piper Jaffray. “Their content is keeping people online longer and driving the revenue.”
The company’s earnings were released after the close of the market. Yahoo traded after hours Wednesday at $183, up from the official Nasdaq close of $175.75, which was up $2.44 for the day.
Yahoo said it attracted more than 105 million users in September, compared with 80 million in June, and has more than 80 million registered users compared with 65 million in the second quarter.
The company provided a daily average of 385 million page views in September compared with 310 million in June.
The sites’ popularity recently enabled Yahoo to increase its advertising rates and sign new clients.
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New Hot Streak
Yahoo shares have zoomed again since early August, though they remain far below their spring record high of $244. Weekly closes and latest on Nasdaq:
Monday: $175.75
Source: Bridge News
