Yahoo registered a de-growth of 13 per cent in revenues at $1.57 billion compared to $1.8 billion reported last year. The bottom-line in Second quarter surged 7 per cent to come at $141.4 million from $131.2 million last year. Google earlier reported 3% (YoY) growth in revenues whereas bottom-line was higher by 18 per cent.
The improvement in bottom line is due to the cost cutting measures taken by new CEO Carol Bartz. The cost cutting was largely by shutting down laggard operations and employee retrenchment as Yahoo has cut down its employee strength by 9 per cent in a year.
The display revenues dropped off 14 per cent and listings revenue was down significantly at 21 per cent. The company is pinning hopes on cost cutting exercise and aggressive spending on growth properties to turn around fortunes. The company also looks hopeful about its site re-designed that would be rolled out in US and in other countries like UK, France and India within a week.
Revenue Segmentation:
The company would also scrap some of the advertisement on the site and would be more careful in dolling out ads to users and expects this measures to cost around $75 million in advertising revenue.
International revenues contribution ex-TAC was pegged at 24% at $ 274.5 million whereas operating Income as percentage of revenue was at 20%. International market has shown growth despite lackluster performance in US markets compared to corresponding quarter.
The rumour mill is still abuzz with Yahoo entering into a search partnership with Microsoft and these result may provide backdrop to any potential partnership as search revenues for yahoo are dwindling by the day.
