Yahoo beats expectations in the first quarter of 2017 ahead of Verizon deal

 
Courtney Goldsmith
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Yahoo! Reports Drop In Profit But Rise In Sales In Q2
Cyber attacks caused huge problems for the internet business (Source: Getty)

Yahoo beat expectations in what is likely to be its last quarterly results as an independent company ahead of the sale of its core business to US telecoms giant Verizon.

The figures

The US firm said revenue increased 22.1 per cent to $1.33bn (£1.04bn) in the first quarter of 2017 from $1.09bn the previous year. Net revenue, which excludes traffic acquisition costs, was $833.8m, three per cent lower than 2016 but ahead of expectations.

Net income attributable to Yahoo was $99.4m, or 10 cents per share, compared with a net loss of $99.2m, or a loss of 10 cents per share, in the first quarter of 2016.

Shares in the company edged up less than half a per cent.

Why it's interesting

Verizon agreed to buy Yahoo's core business, including its online search and Yahoo Mail, for $4.48bn, lowering its original offer by $350m, following two massive cyber attacks in the second half of 2016.

Yahoo said the deal is expected to close in June.

What Yahoo said

Chief executive Marissa Mayer said:

"Our Q1 performance reflects solid financial and operational execution in the new year."

"As we enter our final quarter as an independent company, we are committed to finishing strong and planning for the best possible integration with Verizon. With the transaction anticipated to complete in June, I've never been more proud of the improvements we've made to the business and the value we've delivered to our shareholders."

Read more: Yahoo's Marissa Mayer could receive a $23m golden parachute

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