Yahoo Online Ad Revenues Surge

Share this article:
Yahoo reported strong revenue and profit growth during the second quarter, thanks to increased demand for search listings and online advertising.


The Sunnyvale, CA-based company reported $113 million of net income for the quarter on $609 million in sales, excluding money paid to partners of search unit Overture Services. Sales nearly doubled from the year-ago period and profits were up from $51 million. Much of Yahoo's growth came from online advertising.


Revenues from marketing services, which includes Overture and other online advertising, rose to $468 million, more than double the amount produced during the same period a year earlier. The total excludes the $223 million in revenue shared with Yahoo search partners. The figure was slightly below what some Wall Street analysts expected. Piper Jaffray, for example, expected marketing services to generate $472 million.


Yahoo said its marketing services growth was generated from new sales along with recent acquisitions, such as the Kelkoo comparison-shopping engine in Europe. Without acquisitions, Yahoo said marketing services grew 45 percent.


Yahoo's other revenue sources also showed growth.


Fees from subscription services totaled $104 million, up 49 percent.


It ended the quarter with 6.4 million paying subscribers, adding 600,000 in the quarter. Listings revenue amounted to $38 million, up 17 percent.


Yahoo ended the quarter with 146 million registered users, up 26 percent from a year earlier.


This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization. Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions