US Internet veteran Yahoo reported revenue for the first quarter that slightly exceeded analysts’ expectations. Anyway it announced 11.3 percent drop which shows that the web pioneer fails to generate growth in its main business of search engines and visual advertising, transmits Reuters.
Its shares rose nearly 1 percent to 36.66 dollars in the post-trading Tuesday after the announcement of the results.
For nearly four years as a CEO of Yahoo, Marissa Mayer failed to achieve great success in their efforts to win market share from Internet giants such as Facebook and Google.
The total revenue fell by 11.3 percent to 1.09 billion dollars in the first quarter, which ended on March 31. It was the first decline after four consecutive quarters of growth. Average estimate of analysts was for revenue of 1.08$ billion, according to Thomson Reuters.
After the deduction of fees paid to partner websites, Yahoo’s revenue fell to 859.4$ million from 1.04$ billion.
The net loss on Yahoo reached 99.2$ million, or 10 cents per share, last quarter, compared with a profit of 21.2$ million, or 2 cents per share just a year earlier.
On adjusted basis, it has earned 8 cents per share. Again, on that basis, analysts expected earnings of 7 cents per share.
The company’s revenues climbed to its peak in 2008, when Yahoo still possessed of the most visited websites. But in recent years it fails to beat Google and Facebook in the battle for online advertisers.
Mayer concentrates its efforts to raise revenue in the new business with mobile and video advertising. In the past quarter, they increased by 6.8 percent to 390$ million. Anyway that is significantly slower than a year ago.
Under pressure from its investors Yahoo announced in February that it was selling its main business. This happened after the company refused to separate its share of the e-commerce giant Alibaba Group Holding.
The first stage of the tender for the main business, Yahoo ended in Monday. Verizon Communications was considered the favorite who will win the bidding. The other two companies which compete for the purchase of the main business on Yahoo, are the private equity company TPG and the specialist in online advertising YP Holdings.
During the presentation of the financial results late last night Marissa Mayer said the giant acts quickly when it comes to considering the offers it has received. Meyer’s statement seeks to reassure investors who insist on a quick sale of the main business on Yahoo, writes Bloomberg.
Although Meyer declined to reveal more details, she said that the management of the Internet giant is communicating every day to the committee that aims to make strategic review of Yahoo’s main business. The Executive Director stressed that everything goes according to the pre-established strict calendar that leads to a deal.
During the presentation of the results Meyer said she will reveal more details for the tenders after she and the management team have already responded to “hundreds ” questions on the topic.