Yahoo!'s Q1 Earnings-Revenues Increased, Profits Decreased

Apr 19, 2006 | 1,362 views | by Navneet Kaushal
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A recent study shows that Yahoo!’s net income came down to 22%, but surprisingly it's revenues were increased by 34%. However, Yahoo!, based in Sunnyvale, Calif., submitted a net income of 159.9 million, or 11 cents, a share which was found to be less than last year's $ 204.6 million, or 14 cents a share.

If the profit was going down, it was the revenue which increased by 34% to $1.57 billion from $1.17 billion in the previous year quarter. Apart from commissions which were paid to marketing partners, the figure of sales found to be $1.09 billion, which was quite more as compared with $821 million in the year-earlier period.

From the report given in the businesswire

– Revenues were $1,567 million for the first quarter of 2006, a 34 percent increase compared to $1,174 million for the same period of 2005.

– Marketing services revenue was $1,381 million for the first quarter of 2006, a 35 percent increase compared to $1,025 million for the same period of 2005.

– Fees revenue was $186 million for the first quarter of 2006, a 25 percent increase compared to $149 million for the same
period of 2005.

– Revenues excluding traffic acquisition costs (”TAC”) were $1,088 million for the first quarter of 2006, a 33 percent  increase compared to $821 million for the same period of 2005.

– Gross profit for the first quarter of 2006 was $909 million, a 29 percent increase compared to $707 million for the same period of 2005.

– Operating income for the first quarter of 2006 was $201 million (including $109 million for stock compensation expense recorded under the fair value method), a 19 percent decrease compared to $247 million (including $9 million for stock
compensation expense recorded under the intrinsic value method) for the same period of 2005.

4.thumbnail Yahoo!s Q1 Earnings Revenues Increased, Profits Decreased

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
4.thumbnail Yahoo!s Q1 Earnings Revenues Increased, Profits Decreased
4.thumbnail Yahoo!s Q1 Earnings Revenues Increased, Profits Decreased