TECH; Yahoo Gains in Income, Aided by Online Dating Sites Service

TECH; Yahoo Gains in Income, Aided by Online Dating Sites Service

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

While marketing revenue will continue to decline for Yahoo, the major Internet portal, charge earnings, specially from the quickly growing online personals solution, is getting back together the real difference.

The business’s income in the very first quarter ended up being $192.7 million, up 7 %. Excluding revenue from HotJobs, the internet help-wanted site that Yahoo purchased in February, the business’s product sales had been really flat utilizing 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, mainly as a result of a $64 million fee associated with alterations in accounting.

Excluding that fee, the organization received $10.5 million, as opposed to a lack of $11.5 million when you look at the duration an earlier year. 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 usually have made progress, nevertheless they have not done any such thing impressive.”

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

Continuing a drop that is yearlong Yahoo’s marketing income had been $121 million, down 15 per cent when it comes to 12 months. Yahoo states 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 charge income, that will be the certain area where the business gets the greatest hopes for development, ended up being $55 million, up 66 percent. The organization said it now had about 500,000 members to its different pay solutions, using the $ personals that are 19.95-a-month the fastest growing. The business was earnestly incorporating other people, including premium variations of its email and games offerings.

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

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

”The downturn into the marketing market started later on internationally, which is starting to support, due to the fact usa did,” said Terry Semel, Yahoo’s leader.

Yahoo’s market is growing. It counted an overall total of 237 million unique users all over the world in the quarter, weighed against 192 million within the quarter that is first of.

Yahoo now claims it expects income become $205 million to $225 million when you look at 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, compared to objectives of $798 million. That will represent at the very least a 20 per cent enhance over just last year, whenever Yahoo’s revenue had been $717 million. However it would be well timid regarding the $1.1 billion in income the business posted in 2000.

Indeed, lots of the initiatives by which Mr. Semel has based their turnaround plan will perhaps not begin to just just just take impact before the end for this 12 months. Yahoo has high hopes for the jv to supply online sites through SBC Communications and maybe other cable and phone businesses, which is busily focusing on much more fee-based solutions. As well as HotJobs, it really is seeking to build or purchase solutions that compete with newspapers’ categorized parts in genuine property and car product sales.

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

Susan Decker, Yahoo’s main officer that is financial stated it absolutely was dropping the pro forma measure as the new accounting guidelines give it time to simply take less quarterly costs relating to their purchases, although a lot of, like Yahoo, need to make one-time corrections this quarter.