Yahoo 2Q earnings, revenue fall amid ad slump - KAUZ-TV: Newschannel 6 Now | Wichita Falls, TX

Yahoo 2Q earnings, revenue fall amid ad slump

Posted: Updated:
  • NationalMore>>

  • Varying health premium subsidies worry consumers

    Varying health premium subsidies worry consumers

    Thursday, July 24 2014 12:44 PM EDT2014-07-24 16:44:49 GMT
    Linda Close was grateful to learn she qualified for a sizable subsidy to help pay for her health insurance under the new federal law. But in the process of signing up for a plan, Close said her HealthCare.gov...
    Linda Close was grateful to learn she qualified for a sizable subsidy to help pay for her health insurance under the new federal law. But in the process of signing up for a plan, Close said her HealthCare.gov account...
  • Gov: Senator in plagiarism row deserves respect

    Gov: Senator in plagiarism row deserves respect

    Thursday, July 24 2014 12:38 PM EDT2014-07-24 16:38:53 GMT
    Sen. John Walsh said his unattributed use of others' work in his master's thesis was not plagiarism but "a few citations that were unintentionally left out of a term paper" that he blamed in part on...
    Montana Gov. Steve Bullock says he didn't know that Sen. John Walsh had plagiarized parts of his master's thesis when he appointed the former National Guard general to the Senate earlier this year.
  • Arizona execution rekindles death penalty debate

    Arizona execution rekindles death penalty debate

    Thursday, July 24 2014 12:38 PM EDT2014-07-24 16:38:21 GMT
    A condemned murderer took nearly two hours to die and gasped for about 90 minutes during an execution in Arizona that quickly rekindled the national debate on capital punishment in the U.S.
    The nation's third execution in six months to go awry rekindled the debate over the death penalty and handed potentially new evidence to those building a case against lethal injection as cruel and unusual punishment.
By BARBARA ORTUTAY
AP Technology Writer

NEW YORK (AP) - Yahoo Inc. said Tuesday that its second-quarter earnings and revenue declined, as the company struggled again with display advertising sales.

Both fell short of Wall Street's expectations, as did revenue forecast for the current quarter, causing the limping Internet icon's stock to fall in extended trading.

Before the forecast was revealed during a conference call with analysts, Yahoo's stock rose as the company announced that Alibaba Group agreed to reduce the number of shares Yahoo is required to sell in the Chinese e-commerce company in an initial public offering of stock this year. Yahoo, which holds a 23 percent stake in Alibaba, now has to sell only 140 million shares in the IPO, down from 208 million earlier.

Although the reduction means that Yahoo's immediate windfall from the Alibaba IPO will be smaller, it's also a long-term bet on Alibaba's success. Analysts say Alibaba's IPO could be bigger than Facebook's $16 billion stock debut two years ago, which would make Alibaba the biggest tech IPO ever.

Yahoo earned $270 million, or 26 cents per share, in the March-June quarter. That's down from $331 million, or 30 cents per share, in the same period a year earlier. Adjusted earnings were 37 cents per share in the latest quarter.

Revenue fell 4 percent to $1.08 billion from $1.14 billion. After subtracting commissions paid to Yahoo's ad partners, revenue totaled $1.04 million, down 3 percent from $1.07 billion a year ago.

Analysts were expecting adjusted earnings of 39 cents per share and post-commission revenue totaling $1.09 billion, according to Zacks Investment Research.

CEO Marissa Mayer said the company was "not satisfied" by the results.

"(We) saw display revenue decline, further highlighting the fact that we need to work faster to ameliorate the negative trends," she said in a statement. "I believe we can and will do better moving forward."

Yahoo has seen its key display advertising sales slump amid competition from No. 1 Google Inc. and No. 2 Facebook Inc. Even Microsoft Corp. is catching up. Research firm eMarketer, which tracks digital advertising, expects Microsoft to surpass Yahoo to take the No. 3 spot in the worldwide digital ad market.

Mayer has been trying to turn Yahoo's business around, but she has acknowledged that it will take "multiple years."

For the current quarter, Yahoo expects revenue after ad commissions in the range of $1.02 billion to $1.06 billion. Analysts polled by FactSet were expecting $1.1 billion.

Shares of Yahoo, which is based in Sunnyvale, California, fell 76 cents, or 2.1 percent, to $34.85 in extended trading. The stock had closed at $35.61, down 9 cents for the day and nearly 12 percent since the start of the year. By comparison, the Standard & Poor's 500 index is up 7 percent this year.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • Israel swears in new president amid Gaza war

    Israel swears in new president amid Gaza war

    Thursday, July 24 2014 12:37 PM EDT2014-07-24 16:37:05 GMT
    Israel's parliament has sworn in Reuven Rivlin as the country's new president, replacing Nobel Peace laureate Shimon Peres whose term ends as Israel is fighting a war against Hamas in Gaza.
    Israel's parliament has sworn in Reuven Rivlin as the country's new president, replacing Nobel Peace laureate Shimon Peres whose term ends as Israel is fighting a war against Hamas in Gaza.
  • Pope meets Sudanese woman sentenced to death

    Pope meets Sudanese woman sentenced to death

    Thursday, July 24 2014 12:26 PM EDT2014-07-24 16:26:46 GMT
    A Sudanese woman who was sentenced to death in Sudan for refusing to recant her Christian faith has arrived in Italy along with her family, including an infant born in prison.
    Pope Francis met privately Thursday with a Sudanese woman who refused to recant her Christian faith in the face of a death sentence, blessing the woman as she cradled her infant daughter born just weeks ago in prison.
  • Iraqis: Jihadis destroy ancient mosque in Mosul

    Iraqis: Jihadis destroy ancient mosque in Mosul

    Thursday, July 24 2014 12:26 PM EDT2014-07-24 16:26:33 GMT
    Iraqi officials say militants have attacked a prisoner convoy north of Baghdad, killing 52 prisoners and eight soldiers.
    Residents of the Iraqi city of Mosul say Islamic extremist militants have blown up a revered Muslim shrine traditionally said to be the burial place of the Prophet Jonah.