Yahoo second-quarter profit slips but beats expectations

 
City A.M. Reporter
YAHOO’S second-quarter net revenue was down slightly at $1.071bn (£706.5m), it said last night, as the internet company posted adjusted profit that was ahead of Wall Street targets.

Shares of Yahoo, which have gained about 70 per cent since chief executive Marissa Mayer took the helm a year ago, fell 1.68 per cent to close at $26.88.

Yahoo’s net revenue, which excludes fees paid to partner websites, was $1.071bn in the second quarter, within its forecast of $1.06bn to $1.09bn, but below the $1.081bn it posted in the second quarter of 2012.

Yahoo said it earned 35 cents per share, compared with 30 cents for the same period last year.

Analysts polled by Thomson Financial expected 35 cents in adjusted earnings per share.

Revenue from Yahoo's display advertising business fell 11 per cent from the year before on an adjusted basis, while search advertising revenue was up five per cent on an adjusted basis.