TECHNOLOGY; Yahoo Gains in Revenue, Aided by Internet Dating Provider

TECHNOLOGY; Yahoo Gains in Revenue, Aided by Internet Dating Provider

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

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

The business’s income within the quarter that is first $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 really flat with all the $180 million it posted per year earlier in the day and somewhat in front of analysts’ expectations.

Yahoo destroyed $53.6 million within the quarter, mainly due to a $64 million cost pertaining to alterations in accounting.

Excluding that cost, the organization received $10.5 million, in comparison to a loss of $11.5 million when you look at the duration a year earlier in the day. The revenue equals 2 cents a share, matching analysts’ forecasts.

”No bad news is very good news for Yahoo,” stated Safa Rashtchy, an analyst at U.S. Bancorp Piper Jaffray. ” They have actually made progress, nonetheless they have not done such a thing impressive.”

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

Continuing a yearlong fall, Yahoo’s marketing income ended up being $121 million, down 15 per cent for the 12 months. Yahoo states that this 12 months it nevertheless has $50 million to $60 million in income from long-lasting marketing agreements struck during the height associated with the online bubble, discounts which are not being renewed because they expire.

And charge income, that is the certain area when the business has got the greatest hopes for development, ended up being $55 million, up 66 %. The business stated it now had about 500,000 customers to its different pay solutions, because of the $ personals that are 19.95-a-month the fastest growing. The company happens to be others that are actively adding including premium variations of its email and games offerings.

Income from deal costs — mainly commissions from product purchased on its shopping channel — were $17 million, triple the quantity an earlier year.

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

”The downturn into the marketing market started later on internationally, and it’s also just starting to support, due to the fact united states of america did,” stated Terry Semel, Yahoo’s chief executive.

Yahoo’s audience keeps growing. It counted a complete of 237 million unique users around the world when you look at the quarter, weighed against 192 million when you look at the very first quarter of 2001.

Yahoo now states it expects income to be $205 million to $225 million within the quarter that is second in contrast to analysts’ quotes of $192 million. For many of 2002, Yahoo expects income of $870 million to $910 million, in contrast to expectations of $798 million. That could express at the least a 20 % enhance over this past year, whenever Yahoo’s revenue had been $717 million. Nonetheless it would be well timid associated with the $1.1 billion in income the ongoing business posted in 2000.

Indeed, a number of the initiatives on which Mr. Semel has based their turnaround plan will perhaps not begin to simply simply take impact before the end with this 12 months. Yahoo has high hopes because of its jv to supply online sites through SBC Communications and maybe other cable and phone organizations, which is busily taking care of much more fee-based solutions. Along with HotJobs, it really is seeking to build or purchase solutions that compete with newspapers’ categorized parts in genuine auto and estate product sales.

Interestingly, Yahoo did not report pro forma outcomes — a personalized measure maybe not consistent with generally accepted accounting axioms — because it has since 1997. Such pro forma outcomes, which were employed by many online organizations, have now been widely criticized.

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