Yahoo posts on-point second quarter earnings as sale draws to a close

Jake Cordell
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Yahoo is currently entertaining bids for its web businesses
Yahoo is currently entertaining bids for its web businesses

Yahoo investors were unmoved by a mixed earnings report from the American technology giant this evening as the firm prepares to offload its internet business in the next few days.

Revenues came in at a total of $1.3bn in the second quarter of 2016, slightly ahead of expectations, but earnings per share missed analysts' hopes by a touch at nine, not ten cents. The share price was broadly flat in after hours trading as investors await a final decision on who the winning bidder will be.

CEO Marissa Mayer said the firm had made good progress on pushing down costs and reducing employee numbers to their lowest in a decade, though Yahoo still makes less than half as much per employee in revenue as rivals Google and Facebook, and even less than infrastructure-heavy telecoms firms Verizon and AT&T.

Yahoo is nearing the end of the potential sale of its web businesses, which could be to one of those rivals, with final bids expected this week in a deal which could value the technology company at anywhere between $3.75bn and $6bn according to Bloomberg.

Shares in Yahoo have jumped by around one-third since the start of the year to stand at $37.95 as the sale process reaches its conclusion.

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