Yahoo sales decline in the second quarterCiprian on Friday, July 19, 2013
The company has accumulated a heavy credit card bill over the last months due to the acquisition of social and mobile start-ups, but it is more interesting to them that their earnings were on target.
During the second quarter they could report a net income of $331 million, or 30 cents per share, excluding TAC they achieved revenue of $1.071 billion. Marissa Mayer`s statement reflects this optimism:
I’m encouraged by Yahoo!’s performance in the second quarter. Our business saw continued stability, and we launched more products than ever before, introducing a significant new product almost every week. From the new Yahoo! News, the new Yahoo! Sports app, the redesigned Yahoo! search, the new Flickr, the new Yahoo! Mail for tablet, the Yahoo! Weather app, our new Yahoo! app with Summly – this quarter drove tremendous improvements in our product line and our users responded with increased usage and engagement.
Among the acquisitions the company has made there are Astrid, Milewise, Loki Studios and of course Tumblr, for which they paid $1.1 billion in May.
For the third quarter Wall Street is expecting revenue of $1.12 billion with earnings of at least 34 cents per share.
Other interesting figures from the second quarter:
• Price-per-Ad (excluding Korea) decreased 12 percent annually.
• Number of Ads Sold (excluding Korea) decreased by around 2 percent on an annual basis.
• In search, Paid Clicks (excluding Korea) rose 21 percent annually. Price-per-Click (excluding Korea) fell by nearly 8 percent.