Internet major Yahoo Inc has posted 5 per cent drop in net income to USD 296 million in the October-December quarter of 2011 due to decline in advertising revenues.
In the year-ago period,the company had a net income of USD 312 million,Yahoo said in a statement.
The company’s revenues declined by 13 per cent from the year-ago period to USD 1.32 billion during the fourth quarter of 2011.
“Yahoo continued to make progress in the quarter with operating income increasing 10 per cent year over year,” Yahoo CEO Scott Thompson said.
“In 2012 we will be aligning resources behind key areas of focus to enable us to move aggressively in market and grow our business,bringing innovative new products and experiences to both our users and advertisers,” he added.
Yahoo’s display ad revenue,which is the primary source of income,totaled USD 612 million for the quarter,a 4 per cent decrease from the year-ago period.
Besides,search ad revenue fell by 27 per cent to USD 465 million during the quarter. Out of total revenues generated through serach ad,USD 48 million came from its partnership with Microsoft.
For the full year ended December 31,2011,Yahoo’s net earnings was USD 1.04 billion compared to USD 1.23 billion in the preceding year.
Yahoo’s revenue dropped about 5 per cent to USD 4.4 billion in 2011 from USD 4.6 billion in 2010,”primarily due to the required change in revenue presentation related to the Search Agreement and the associated revenue share with Microsoft.”
Last week,Yahoo co-founder and former chief executive officer Jerry Yang resigned from Board of Directors and all other positions with the company. PayPal President Thompson was appointed the new CEO succeeding interim CEO Timothy Morse,who took over the role after former CEO Carol Bartz was fired early September 2011.
For the first quarter of 2012,Yahoo expects revenue in the range of USD 1.170 billion to USD 1.260 billion.
Revenue excluding traffic acquisition costs or TAC,which consists of payments to affiliates and payments made to companies that direct consumer and business traffic to Yahoo Properties,is projected between USD 1.02 billion and USD 1.10 billion during first quarter of this year.