Money Matters, Simplified.
Yahoo for Yahoo! as profits rise in fourth quarter
by Pankhuri kapoor - January 27, 2010 - comments
Yahoo! Inc. sees an upsurge in its fourth quarter profits thanks to its CEO, Carol Bartz.
Sunnyvale, CA, January 27 -- Yahoo! Inc. jumped back in the league of top players after it upturned its past year losses into profits, as disclosed in the company’s fourth quarter financial reports.
The company reported its best quarterly net profit since the appointment of Carol Bartz as the chief executive officer of the giant web portal, which has millions of users worldwide and is second to Google, the giant Web search engine. .
The profits earned in the fourth quarter amounted to $153 million which was respectable compared to the loss of $303 million that the company suffered last year and before Carol Bartz took over.
“The fourth quarter marked a strong finish to 2009, which was a transformative year for Yahoo! Our business has positive momentum and we feel good as we head into 2010,” affirms a 61-year-old Carol Bartz, who was CEO of software firm Autodesk before joining the Internet company.
Profits soar while revenue dips
But as the profits soared, thanks to the advertisers who supported the web portal, the revenue showed a 4 percent dip to $1.73 billion in the fourth quarter which was 12 percent lesser than the first three quarters of 2009.
The results released on Tuesday from the headquarters of the search portal in Sunnyvale in California showed a 2.2 percent raise in the after-hours trading and the session closed at $15.99.
Alliance with Microsoft
But Yahoo! has plans to increase its revenue by reducing expenses of the company by partnering with Microsoft to power its search engine.
According to the deal, Yahoo! would get to keep 88 percent of revenue earned from search ads clicked on its website, while the technology costs will be taken care of by Microsoft.
Trade analysts estimate an increase in both the profits and revenue for Yahoo! in the later part of year 2010 if the alliance gets regulatory approval.
Carol Bartz said, “For us, 2010 is about acquisitions to make Yahoo! even stronger. Yahoo! would focus its growth internationally on where the big Internet populations are coming online -- Indonesia, Brazil, India.”
Yahoo ropes in Facebook too
Reportedly, Yahoo has partnered with facebook and has facilitated its users to update their facebook status and share information with friends directly from the Yahoo homepage.
Facebook, the social networking giant corporation, has been incorporated in most of Yahoo! Inc. applications like Yahoo! Mail, News, Sports and Finance in a bid to get more people to join Yahoo’s network.