TECH; Yahoo Gains in Income, Aided by Internet Dating Provider

A number of hot times has spiced within the otherwise bleak company at Yahoo.

The big Internet portal, fee income, especially from its rapidly growing online personals service, is making up the difference while advertising revenue continues to decline for yahoo.

The business’s income into the very first quarter had been $192.7 million, up 7 %. Excluding revenue from HotJobs, the internet site that is help-wanted Yahoo purchased in February, the business’s sales had been basically flat aided by the $180 million it posted per year earlier in the day and somewhat in front of analysts’ objectives.

Yahoo destroyed $53.6 million into the quarter, mostly because of a $64 million cost linked to alterations in accounting.

Excluding that fee, the business attained $10.5 million, in comparison to a loss in $11.5 million into the duration an earlier year. The revenue equals 2 cents a share, matching analysts’ forecasts.

”No bad news is great news for Yahoo,” stated Safa Rashtchy, an analyst at U.S. Bancorp Piper Jaffray. ” They have actually made progress, however they haven’t done any such thing impressive.”

Shares of Yahoo, which announced its results following the areas shut, dropped 2 cents, to $18.44.

Continuing a drop that is yearlong Yahoo’s marketing income ended up being $121 million, down 15 per cent for the 12 months. Yahoo claims that this it still has $50 million to $60 million in revenue from long-term advertising contracts struck at the height of the Internet bubble, deals that are not being renewed as they expire year.

And cost income, that is the area where the business gets the best hopes for development, had been $55 million, up 66 per cent. The organization stated it now had about 500,000 readers to its various pay solutions, with all the $ personals that are 19.95-a-month the fastest growing. The organization was others that are actively adding including premium variations of their email and games offerings.

Income from deal charges — mainly commissions from merchandise purchased on its shopping channel — were $17 million, triple the total amount a year early in the day.

Yahoo’s international community of affiliates lagged behind the usa, with income dropping 21 %, to $26 million.

”The downturn within the marketing market started later on internationally, which is just starting to support, given that united states of america did,” stated Terry Semel, Yahoo’s leader.

Yahoo’s market is growing.

It counted a complete of 237 million unique users around the world within the quarter, weighed against 192 million within the quarter that is first of.

Yahoo now states it expects income become $205 million to $225 million when you look at the 2nd quarter, in contrast to analysts’ quotes of $192 million. For many of 2002, Yahoo expects income of $870 million to $910 million, in contrast to objectives of $798 million. That could express at the least a 20 per cent enhance over this past year, whenever Yahoo’s revenue had been $717 million. However it would nevertheless be well timid for the $1.1 billion in income the business posted in 2000.

Certainly, most of the initiatives on which Mr. Semel has based their turnaround plan will likely not begin to simply just just take impact through to the end of the 12 months. Yahoo has high hopes because of its partnership to provide online sites through SBC Communications and maybe other cable and phone businesses, and it’s also busily focusing on much more fee-based solutions. As well as HotJobs, it really is trying to build or purchase solutions that compete with newspapers’ categorized parts in genuine property and automobile product sales.

Interestingly, Yahoo did not report pro forma outcomes — a personalized measure perhaps not consistent with generally accepted accounting maxims — since it has since 1997. Such pro forma outcomes, that have been utilized by many online businesses, have now been commonly criticized.

Susan Decker, Yahoo’s primary officer that is financial stated it had been dropping the pro forma measure considering that the brand new accounting guidelines give it time to simply just just take less quarterly costs associated with their purchases, although some, like Yahoo, need certainly to make one-time corrections this quarter.

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