Yahoo: Profit slump despite partnership with Microsoft
Despite the partnership with Microsoft and an ongoing corporate restructuring, the Internet company Yahoo has not yet found its way back onto the growth path. In the first quarter, profits slumped by 28 percent to 223 million dollars.
This was announced by the company on Tuesday after the close of the US stock exchange. Fascinatingly, Yahoo thus exceeded even worse analyst expectations. Quarterly revenue also plummeted 24 percent to $1.21 billion. However, Yahoo emphasized that this was due to one-time revenues in the prior-year quarter and a change in accounting in connection with the search engine partnership with Microsoft. The two companies had joined forces in the search engine business to better compete with market leader Google. Yahoo relies on the technology of Microsoft's search engine Bing. Yahoo boss Carol Bartz spoke in a telephone conference of technical problems with the large partner. Microsoft will need longer to achieve the set goals.
Yahoo is the leading provider of online advertising banners in the USA. The group faces increasingly fierce competition from networks such as Facebook and the industry leader in search engines, Google. (SDA)
