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Yahoo posts 244% growth in net income at $186 million for 3Q 2009

Yahoo has reported a growth of 244 per cent in its net income at $186 million for the third quarter ended September 30, 2009, compared to $54 million posted for the corresponding quarter of the previous year. Revenues decreased by 12 per cent to $1.57 billion in the third quarter of 2009, compared to $1.78 billion recorded for the September 2008 ended quarter.

Yahoo has reported a growth of 244 per cent in its net income at $186 million for the third quarter ended September 30, 2009, compared to $54 million posted for the corresponding quarter of the previous year. Revenues decreased by 12 per cent to $1.57 billion in the third quarter of 2009, compared to $1.78 billion recorded for the September 2008 ended quarter.

“With revenue coming in above our guidance and flat sequentially, we had a solid third quarter that signals our major businesses have stabilized,” Carol Bartz, CEO, Yahoo, has said. “With new products like Yahoo homepage, our brand revitalization campaign and expansion in the Middle East through Maktoob.com, our execution is improving and we are focused on what we do best – being the centre of people’s online lives.”

According to Yahoo, its marketing services revenues from owned and operated sites were $851 million for the third quarter of 2009, a 15 per cent decrease compared to $1,002 million for the same period of 2008. The decrease was primarily driven by a 19 per cent decline in search advertising revenue and an 8 per cent decline in display advertising revenue. Marketing services revenues from affiliate sites were $526 million for the third quarter of 2009, a 6 per cent decrease compared to $561 million for the same period of 2008.

Revenues from outside of the United States totalled $432 million, representing 27 per cent of total revenues in the third quarter of 2009. At the end of September 2009, Yahoo had $4.5 billion in cash, cash equivalents and marketable debt securities.

“In the third quarter we saw strength in key areas of our business,” Tim Morse, chief financial officer, Yahoo, has said. “Our efforts to reposition Yahoo are still in the early stages, but we are confident that our investments in the business will enable us to capitalize on growth opportunities as the economy recovers.”

Yahoo has clarified that the third quarter earnings include the gain from sale of its direct investment in Alibaba.com of $98 million recorded during the September 2009 ended quarter. According to a report published in Economic Times, Yahoo’s earnings improvement was primarily driven by a series of layoffs that has whittled the company’s payroll from 15,200 employees in September 2008 to 13,200 at the end of September 2009.

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