Yahoo! net income rises 46 per cent in second-quarter

Revenues decline by 7 per cent.

New Statesman
Photograph: Getty Images.

Internet services giant Yahoo! has posted an attributable net income of $331.15m for the second-quarter ended 30 June 2013, an increase of 46 per cent compared to $226.63m for the same period last year, primarily due to its investment in Chinese e-commerce firm Alibaba and product overhauls.

Revenues declined by 7 per cent to $1.13bn (2012: $1.21bn) primarily due to fall in advertising revenues and web traffic. During the quarter, display revenues fell by 12 per cent to $472m (2012: $ $535m), while search revenues declined by 9 per cent to $418m (2012: $461m).

Compared to the second quarter of last year, price-per-ad and price-per-click fell by around 12 per cent and 8 per cent respectively.

Adjusted EBITDA for the second-quarter was $369m, a 7 per cent rise compared to the same period of 2012.

Apart from launching 12 new products, the company made nine acquisitions including Tumblr to improve its products, content offerings, core technology and resources in the second-quarter.

Marissa Mayer, CEO of Yahoo!, said: “I’m encouraged by Yahoo!'s performance in the second quarter.  Our business saw continued stability, and we launched more products than ever before, introducing a significant new product almost every week.

“From the new Yahoo! News, the new Yahoo! Sports app, the redesigned Yahoo! search, the new Flickr, the new Yahoo! Mail for tablet, the Yahoo! Weather app, our new Yahoo! app with Summly - this quarter drove tremendous improvements in our product line and our users responded with increased usage and engagement.”

During the second-quarter, the company repurchased 25 million shares for $653m and used a net $1bn in cash for acquiring Tumblr and other firms.