Yahoo nets $3.16 billion in Q3 2012
The technology company Yahoo Inc. has reported a net income of $3.16 billion in the three months ended September 30, 2012. $2.8 billion of this was derived from Yahoo’s sale of part of its stake in Chinese e-commerce portal Alibaba Group Holding Ltd but the company also boasted growth in some of its core business areas. Revenues from search and display both rose by one per cent from the same time a year ago, with search bringing in $473 million and display another $506 million.
Yahoo has struggled to throw off its ‘troubled’ label during a long period of high executive turnover and advertisers increasingly turning to competitors Google and Facebook. While it still faces major challenges, it appears to have now demonstrated that it has a core business upon which it can build future growth.
One option open to Yahoo is to increase its media presence by improving its search engine, email and other services including media content such as covering high-profile events such as the Olympics and the upcoming elections. The company announced that it will attempt to raise its profile as a mobile hub by developing sports and entertainment apps optimised for use on smartphones and tablets.
New CEO Marissa Mayer, who joined Yahoo in July from Google, commented: “Yahoo had a solid third quarter and we are encouraged by the stabilisation in search and display revenue. We’re taking important steps to position Yahoo for long-term success, and we are confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.”