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

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

A few hot times has spiced up the otherwise business that is bleak Yahoo.

While marketing revenue continues to decline for Yahoo, the top Web portal, charge earnings, specially from the quickly growing online personals solution, is creating the real difference.

The company’s income within the very first quarter had been $192.7 million, up 7 per cent. Excluding revenue from HotJobs, the internet site that is help-wanted Yahoo purchased in February, the business’s sales had been basically flat with all the $180 million it posted per year previously and somewhat ahead of analysts’ objectives.

Yahoo lost $53.6 million within the quarter, mostly as a result of a $64 million cost linked to changes in accounting.

Excluding that cost, the business received $10.5 million, as opposed to a loss in $11.5 million into the duration a year earlier in the day. 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 usually have made progress, nevertheless they have not done any such thing impressive.”

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

Continuing a yearlong fall, Yahoo’s marketing income ended up being $121 million, down 15 per cent when it comes to 12 months. Yahoo states that this 12 months it continues to have $50 million to $60 million in revenue from long-lasting marketing agreements hit during the height of this online bubble, discounts that aren’t being renewed while they expire.

And charge income, that will be the certain area where the business gets the best hopes for development, had been $55 million, up 66 %. The business stated it now had about 500,000 customers to its different pay solutions, using the $ personals that are 19.95-a-month the fastest growing. The organization is others that are actively adding including premium variations of their email and games offerings.

Income from deal costs — primarily commissions from product purchased on its shopping channel — had been $17 million, triple the total amount an earlier year.

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

”The downturn when you look at the marketing market started later on internationally, which is starting to support, because the united states of america did,” stated Terry Semel, Yahoo’s leader.

Yahoo’s audience keeps growing. It counted an overall total of 237 million unique users all over the world into the quarter, compared to 192 million into the very first quarter of 2001.

Yahoo now states it expects income become $205 million to $225 million within the quarter that is second compared to analysts’ quotes of $192 million. For several of 2002, Yahoo expects income of $870 million to $910 million, weighed against objectives of $798 million. That will represent at the very least a 20 % enhance over this past year, whenever Yahoo’s revenue ended up being $717 million. Nonetheless it would nevertheless be well timid associated with the $1.1 billion in income the ongoing business posted in 2000.

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

Interestingly, Yahoo did not report pro forma outcomes — a measure that is customized commensurate with generally accepted accounting maxims — because it has since 1997. Such pro forma outcomes, that have been employed by many online businesses, have already been commonly criticized.

Susan Decker, Yahoo’s primary monetary officer, stated it had been dropping the pro forma measure as the brand new accounting guidelines let it simply simply just take fewer quarterly costs associated with their purchases, although a lot of, like Yahoo, need certainly to make one-time corrections this quarter.