Yahoo confirms decline in revenue

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Yahoo confirms decline in revenue

San Francisco (CA) – Yahoo reported revenues of of $1.573 billion for the quarter ended June 30, 2009, a decrease of 13 percent from the second quarter of 2008. Net income per diluted share for the second quarter of 2009 was $0.10, compared to $0.09 for the second quarter of 2008.

“I’m pleased with our results this past quarter. We established a clear, simple vision to be the center of people’s lives online, and we’re backing that vision with important initiatives to create ‘wow’ experiences for our users,” spun Yahoo CEO Carol Bartz. “We’re confident that this vision will put us on the right path to growth and profitability long term. Our new homepage is a perfect example of our efforts to create innovative products aimed at increasing user engagement while offering the most compelling advertising proposition in the industry.”

Yahoo CFO Tim Morse also attempted to put a positive spin on the latest financial results.

“Even in this challenging economic environment, Yahoo had a solid quarter, reflecting the strength of our offerings for our users and advertisers,” said Morse. “Moving forward, our goal is to invest in the long-term health of the business so that we are positioned to capture the growth opportunities created by the economic recovery and the ongoing shift to online advertising.”

Other notable revenue items included:

  • Total revenues were reduced by the effects of currency rate fluctuations, the sale of Kelkoo in late 2008 and lower fees revenues from voice-over IP services and subscription music offerings. Excluding the effects of these items, revenues would have declined 6 percent.
  • Marketing services revenues declined 13 percent and fees revenues declined 8 percent, compared to the second quarter of 2008.
  • Marketing services revenues from Owned and Operated sites were $858 million for the second quarter of 2009, a 16 percent decrease compared to $1,016 million for the same period of 2008. The decrease was driven by a 15 percent decline in search advertising revenue and a 14 percent decline in display advertising revenue.
  • Marketing services revenues from Affiliate sites were $520 million for the second quarter of 2009, a 9 percent decrease compared to $571 million for the same period of 2008. The decrease was driven primarily by a shift to lower yielding inventory.

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