Yahoo Q3 profits treble
Online search giant Yahoo has posted its quarter three profits today and exceeded analysts expectations, suggesting that advertisers are spending again.
Yahoo said it earned $186 million (£113.6 million) in the July to September period, more than treble the $54 million earned in the same period of 2008.
Since chief executive Carol Bartz took over earlier this year, the company has undergone a major restructure. Headcount has been reduced by around 2,000 in the last year as it embarked on a cost-cutting exercise amid the global economic downturn.
However, it seems that demand for online advertising is growing again after major rival Google also posted a rise in third quarter profits.
Google also exceeded analysts expectations by announcing that revenue for the period was $4.38 billion – analysts had expected $1.29 billion.
Google chief executive Eric Schmidt said: “The worst of the recession is clearly behind us and we now have the confidence to be optimistic about our future.”
Google is seen as a barometer for internet commerce as its search engine is the heart of the internet’s largest advertising network.
Meanwhile commenting on Yahoo‘s figures, Olin Gillis, an analyst at Brigantine Advisors, said: “We knew the new management could drive some of the cost out of the system, but we want to start to see what can be done to have the company return to growth.”
“This is a company that’s still very much in the process of being restructured. It’s a mild positive. They’re doing what they’re supposed to be doing,” added Gillis.
Yahoo signed a 10-year deal with Microsoft in July to challenge Google – however the deal is still awaiting regulatory approval but is expected to be completed in early 2010.