TECH; Yahoo Gains in Income, Aided by Online Dating Sites Provider

A few hot times has spiced up the otherwise business that is bleak Yahoo.

While marketing revenue continues to decline for Yahoo, the top Web portal, cost earnings, particularly from the quickly growing online personals solution, is getting back together the real difference.

The business’s income into the very first quarter ended up being $192.7 million, up 7 per cent. Excluding revenue from HotJobs, the internet help-wanted site that Yahoo bought in February, the business’s product product sales had been really flat aided by the $180 million it posted per year earlier in the day and somewhat in front of analysts’ objectives.

Yahoo destroyed $53.6 million into the quarter, mostly due to a $64 million fee pertaining to alterations in accounting.

Excluding that fee, the business received $10.5 million, as opposed to a loss in $11.5 million into the duration a year previously. The revenue equals 2 cents a share, matching analysts’ forecasts.

”No bad news is great news for Yahoo,” stated Safa Rashtchy, an analyst at U.S. Bancorp Piper Jaffray. ” They have actually made progress, however they have not done such a thing impressive.”

Shares of Yahoo, which announced its outcomes following the areas closed, dropped 2 cents, to $18.44.

Continuing a yearlong fall, Yahoo’s marketing income ended up being $121 million, down 15 per cent when it comes to 12 months. Yahoo claims that this it still has $50 million to $60 million in revenue from long-term advertising contracts struck at the height of the Internet bubble, deals that are not being renewed as they expire year.

And cost income, which can be the certain area when the business gets the best hopes for development, had been $55 million, up 66 %. The organization stated it now had about 500,000 members to its different pay solutions, utilizing the $19.95-a-month personals being the fastest growing. The organization happens to be earnestly incorporating other people, including premium variations of their email and games offerings.

Income from deal charges — primarily commissions from merchandise purchased on its shopping channel — had been $17 million, triple the total amount a year previously.

Yahoo’s worldwide system of affiliates lagged behind america, with income dropping 21 %, to $26 million.

”The downturn when you look at the marketing market started later on internationally, which is starting to support, due to the fact usa did,” stated Terry Semel, Yahoo’s chief executive.

Yahoo’s market keeps growing. It counted an overall total of 237 million unique users around the world when you look at the quarter, in contrast to 192 million within the quarter that is first of.

Yahoo now says it expects revenue become $205 million to $225 million into the quarter that is second compared to analysts’ quotes of $192 million. For several of 2002, Yahoo expects revenue of $870 million to $910 million, weighed against objectives of $798 million. That will express at the least a 20 % enhance over just last year, whenever Yahoo’s revenue had been $717 million. However it would be well bashful of this $1.1 billion in income the ongoing business posted in 2000.

Certainly, a number of the initiatives by which Mr. Semel has based their turnaround plan will maybe not begin to just simply simply take impact before the end with this 12 months. Yahoo has high hopes for the partnership to supply online sites through SBC Communications and maybe other cable and phone organizations, and it’s also busily focusing on a lot more fee-based solutions. As well as HotJobs, its trying to build or buy solutions that compete with newspapers’ categorized parts in real property and automobile product sales.

Interestingly, Yahoo did not report pro forma outcomes — a personalized measure perhaps not commensurate with generally accepted accounting maxims — since it has since 1997. Such pro forma outcomes, that have been employed by many Web organizations, have now been commonly criticized.

Susan Decker, Yahoo’s primary officer that is financial stated it had been dropping the pro forma measure since the brand brand brand new accounting rules give it time to just take less quarterly fees associated with their purchases, although a lot of, like Yahoo, need to make one-time modifications this quarter.


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