Yahoo revenues slide as display advertising wanes

ONLINE group Yahoo’s net revenue declined slightly in the second quarter, it said last night, on weakness in its display advertising business.

Shares of the internet search company dropped around two per cent in after-hours trading.

Yahoo reported net income of $237m (£147m), or 18 cents a share, compared with $213m, or 15 cents a share, in the year-earlier quarter.

The company forecasts third-quarter net revenue -- which excludes the fees that Yahoo pays to partner websites -- of between $1.05bn and $1.1bn.

Yahoo is a leading provider of online display ads in the US, but the company is facing increasing competition from social networking service Facebook and continuing pressure from search leader Google.

Yahoo said net revenue in the second quarter was roughly $1.1bn, compared with $1.13bn in the year-earlier period.