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Yahoo’s earnings and revenues fell in the second quarter as various factors — including a deal with Microsoft and executive shuffles — weighed on results.
Yahoo’s earnings and revenues fell in the second quarter as various factors — including a deal with Microsoft and executive shuffles — weighed on results.Revenues for the quarter were $1.08 billion, a 5% drop from the comparable quarter in 2010. The figure was below analysts’ estimate of $1.11 billion. In a statement, Yahoo blamed the shortfall on a search- and revenue-sharing agreement with Microsoft. The companyinked a 10-year deal with Microsoft in 2009 in which the latter’s Bing will be the search engine for all Yahoo sites. Meanwhile, net earnings for the quarter were up 11%, to $237 million.
Though display advertising is booming this year, Yahoo’s share of the business isn’t keeping pace with rivals like Facebook and Google. In Yahoo’s statement, CEO Carol Bartz (pictured) blamed the softness on “comprehensive changes we have made in our sales organization to position ourselves for more rapid display growth in the future.”
Yahoo’s earnings stand in marked contrast to those of Google’s, which posted revenues of $9 billion in its second quarter, a 32% jump over Q2 2010, and a net income of $2.5 billion, compared to $1.84 billion for the same period in 2010. Researcher IDC reported in May that Google, which surpassed Yahoo in search ad revenues years ago, now sells more display ads as well.
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