Source: CBR

Yahoo profit plunges 78% in weak Q1
Published:27-April-2009

By Datamonitor staff writer

Plans to cut its workforce by 5%

Yahoo has reported a 78% decline in net income at $118m for the first quarter 2009, compared to $537m in the year-ago quarter, on revenue down 13% at $1.6 billion.  It said it plans to cut its workforce by 5% after profit was hit by currency rate fluctuations, the sale of Kelkoo, and lower revenue from broadband partnerships, voice-over IP services, and subscription music offerings.

During the quarter, operating income declined 17% to $101m, while diluted EPS fell 80% to $0.08, compared to $0.37 in the first quarter of 2008.

Marketing services revenue declined 12% to $1.38 billion, with owned and operated sites revenue decreasing 10% to $872m and affiliate sites revenue decreasing 16% to $511m. Fees revenue fell 20% to $197m. Geographically, US revenue declined 9% to $1.2 billion, while international revenue fell 23% to $392m.