Yahoo to narrow focus, partner Google as profits fall

News Broadband Global 21 OKT 2015
Yahoo to narrow focus, partner Google as profits fall
Yahoo! reported revenues for the third quarter up 7 percent year-on-year to USD 1.226 billion. Search revenue increased 13 percent to USD 509 million, after traffic acquisition costs of USD 119 million, and display revenue rose 14 percent to USD 509  million and generated USD 104 million in TAC. Mobile revenue, equal to USD 271 million, represented 24 percent of traffic-driven revenue in the third quarter, up from 20 percent a year ago. 

Adjusted operating profit was still down to USD 92 million from USD 156 million a year ago, and net profit dropped to USD 76 million from USD 6.77 billion in Q3 2014 when the group sold shares in Alibaba. CEO Marissa Mayer said the results were largely in line with expectations. Moving into 2016, she said the company will work to narrow its strategy, focusing on fewer products with higher quality to achieve improved growth and profitability. It's other top priority is the planned spin-off of Aabaco Holdings, the new company for its remaining stake in Alibaba. 

Yahoo also announced separately an agreement for services from Google, started 01 October and valid until the end of 2018. Google will provide Yahoo with search ads through Google’s AdSense for Search service, web search services through Google’s Websearch Service, and image search services. The Google search results will be available to Yahoo for both desktop and mobile platforms, on its own and affiliate sites, in around 20 countries. 

Yahoo said the deal is not exclusive and it decides how much search traffic to send Google's way. Google will pay Yahoo a percentage of the gross revenues from ads displayed on Yahoo sites, and Yahoo will pay Google fees for requests for search results. The agreement remains subject to clearance by competition regulators at the US Department of Justice. Yahoo announced in July that it was testing Google search results, after earlier revising its existing search agreement with Microsoft. 

Categories:

Internet

Companies:

Microsoft,  Google,  Yahoo!,  Alibaba

Regions:

Global

Tags:

Financial figures, Portals / social media, Information services, Advertising services

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