Pick up in advertising spend boosts Yahoo profits

| January 27, 2010 | 0 Comments
Pick up in advertising spend boosts Yahoo profits

Online search giant Yahoo has posted strong quarter four profits but said sales continue to decline.

The company said net profit in the October to December period was $153 million (£95 million) compared with a $303 million loss in the same period in 2008.

However, revenue was down 4% to $1.7 billion in the quarter compared with the previous quarter.

The economic downturn has had a major impact on search engines as advertisers have reduced their spend significantly.

As a result, the company underwent a major restructure. Headcount was reduced by around 2,000 as it embarked on a cost-cutting exercise amid the global economic downturn.

Commenting on the figures, chief executive Carol Bartz, said: “The fourth quarter marked a strong finish to 2009, which was a transformative year for Yahoo.

“Our business has positive momentum and we feel good as we head into 2010,” she added.

Meanwhile, for the 2009 year, Yahoo made a £598 million profit - 43% higher than the 2008 year.

Yahoo signed a 10-year search and advertising deal with Microsoft in July 2009 to challenge US search engine giant, Google. However the deal is still awaiting regulatory approval which is expected next month.

Yahoo’s results come just a week after Google, said revenues rose 17% in the fourth quarter 2009 compared with the same period a year ago.

Advertising earnings were higher at the company with revenues totalling $6.67 billion (£4 billion) in the October to December period - up from $5.7 billion a year ago.

For the 2009 year, net profit rose 54% to $6.52 billion.

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