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Yahoo suffered a 19 percent drop in quarterly profit and net revenue, failing to meet Wall Street expectations of $1.37 billion. It also missed Thomson Financial’s consensus earnings estimate of 11 cents.
Net income for 2Q08, with one-time charges subtracted, fell to $139 million - 10 cents a share - compared with $161 million (12 cents a share) in 2Q07. Revenue, minus payments to ad partners, rose eight percent, to $1.35 billion, from last year. Gross revenue increased six percent to $1.7 billion.
Growth slowed in brand advertising, but Yahoo President Sue Decker insisted Yahoo made headway in remnant display advertising through the Right Media Exchange, having increased display ad volume annually by 12 percent. Amp is purportedly also doing well: the San Francisco Chronicle and San Jose Mercury News are testing the system. It will roll out to other newspapers in Q3.
Search revenues increased 19 percent, resulting from growth in query volume and revenue per share. Decker took pains to point out Yahoo is serious about competing in the search sector, ticking off new platforms like Search Monkey and BOSS, as well as its potentially lucrative sponsored search liaison with Google.
Given its ongoing battle for control against Microsoft and Carl Icahn, things could have been worse, observes Jeffrey Lindsay analyst Sanford C. Bernstein (via the Los Angeles Times and MarketingVOX). “It was a disappointment,” he said, “but people were fearing a disaster.”
This week Yahoo and maverick investor Carl Icahn made a deal in which Icahn joins Yahoo’s board and selects candidates for two other board seats. The devil’s pact enables Yahoo to avert a likely board ousting attempt by both Icahn and Microsoft during its annual shareholders meeting on August 1.
“We are executing and delivering against the strategy we laid out, even under extraordinary conditions,” CEO Jerry Yang said in a conference call yesterday.
Yahoo shares went up two percent to $21.86 after trading hours yesterday. In a broad stroke of irony, last week Google’s shares toppled eight percent after it reported a Q2 revenue increase of 39 percent over last year.
Katz Media Group has added another new client, Lincoln Financial Media, and will sell ad time on the company’s 15 stations beginning immediately.
Katz also added CBS Radio and Entercom last week, picking them off from Interep’s list.
Katz has also…
Last week, Aegis Group CEO Robert Lerwill resigned unexpectedly, sparking speculation that a takeover may be on the horizon.
Lerwill stepped down officially today (Monday), with Aegis chairman John Napier taking over his duties on an interim basis, writes MediaPost. People…
Out-of-home companies are bracing for the recession like everyone else, but they may not feel the sting as badly as other media.
Though the third quarter brought negative growth to the nation’s three largest OOH companies - Clear Channel Outdoor,…
The 82nd annual Macy’s Thanksgiving Day Parade pulled an average 12.6 rating/26 share on Thanksgiving morning, Nov. 27, according to Nielsen.
That was 8% higher than its telecast last year, Mediaweek writes. NBC estimated that a total 44.7 million viewers…
Top American non-luxury auto brands received higher ratings and less negative comments from online consumers than competing Japanese brands, according to an analysis of consumer opinions collected from automotive review websites by Biz360, MarketingCharts reports.
The research, which aggregated a year’s…
Email, news gathering and paying bills continue to be the most widely used online activities among U.S. adults, but downloading TV programs, watching videos and making web phone calls posted the biggest overall growth, according to data from Mediamark Research…
