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Yahoo! posts small revenue rise

Display advertising earnings decline.

Yahoo! has posted a net income of $295.6m for the fourth-quarter of 2012, a decline of 8 per cent compared to the same period a year ago despite a rise of 4 per cent in revenues.

Revenues, net of payments to partner sites and other distribution costs, were $1.2bn.

The company’s search advertising revenues grew by 14 per cent to $427m in fourth-quarter, while display advertising revenues, excluding traffic acquisition costs, fell by 5 per cent.

Marissa Mayer, who joined Yahoo! as chief executive in July, said: “Overall, we have a big investment that we want to make and a big push on search. We have lost some share over the last few years and we would like to regain that share.” She warned that smartphones were “still a very nascent source of revenue for us”.

Yahoo!, which is facing tough competition from Facebook, Twitter, Google and Amazon, said enhancements to its user interface on desktop and mobile, modifications to Microsoft’s ad-serving technology and favourable seasonal trends during the Christmas season contributed growth in earnings.

With revamped Yahoo Mail app and new Flickr iPhone app, the company grew its mobile users to more than 200m.

Meanwhile, Yahoo! shares grew by almost 5 per cent on Monday.