Yahoo's Q1 Earnings, Revenue Down
The early results of its revenue-sharing agreement with Microsoft appear to be lackluster.
Yahoo on Tuesday reported fairly pedestrian first-quarter earnings that indicated its corporate turnaround isn’t complete and the early results of its revenue-sharing agreement with Microsoft are lackluster.
The pioneering Internet company posted a $223 million profit, down from $310 million in the same frame last year, on revenue that dropped 24 percent to $1.2 billion. Without traffic-acquisition costs, revenue fell 6 percent to less than $1.1 billion.
During a conference call with analysts, CEO Carol Bartz said the company’s “overall turnaround is proceeding on schedule” and boasted of huge page-view statistics for such events as the Super Bowl and the Oscars. The later event scored 1.3 billion page views, about double compared with the previous year.
Bartz also touted Yahoo’s “Primetime in No Time” show, which got 500 million views during the quarter. The online show is a 4-minute roundup of a variety of TV series; on Tuesday, the show featured snippets from Kate Plus 8, Dancing With the Stars, 20/20 and William & Catherine: A Modern Fairytale.
Also Tuesday, eMarketer said that Yahoo will likely lose its No. 1 standing for display ads in the U.S. this year to Facebook and might be overtaken by Google next year.
According to eMarketer, Yahoo will have 16.4 percent of the Internet’s display advertising market, up slightly from last year, but Facebook will climb from 13.6 percent last year to 21.6% percent this year.
Yahoo shares were down 22 cents Tuesday to $16.12 and rose 41 cents in after-hours trading.