AFP, San Francisco :
Yahoo’s quarterly profits shot up by more than double to $163 million even as it prepares for a takeover by Verizon.
The faded internet pioneer skipped its usual quarterly earnings call with analysts due to the pending takeover by the US telecommunication company, for which chief executive Marissa Mayer said Yahoo is busy preparing despite recent revelations about a major data breach that may affect the deal. “We launched several new products and showed solid financial performance across the board,” she said in an earnings release, which beat expectations despite only a slight rise in revenue. Shares were up 1.49 percent to $42.30 in after-market trades following the earnings report release, reflecting confidence the breach is not prompting a significant number of users to abandon Yahoo.
Revenue for the quarter that ended on Sept. 30 came to $1.3 billion, up from the $1.2 billion in the same period a year earlier.
Mobile revenue during the quarter reached $396 million, up from $271 million the previous year.
The boost in profits came from cutting workers and costs, not from the strength of its core business.
They hit the mark nevertheless, according to independent Silicon Valley analyst Rob Enderle.
“For the most part, people were expecting a burning crater where Yahoo used to be,” he said. “This is the kind of financial report they needed to not increase the probability that Verizon runs away screaming from the deal.”
The beleaguered internet company agreed in July to sell its core assets to Verizon for $4.8 billion, ending a 20-year run as an independent company.
Yahoo’s quarterly profits shot up by more than double to $163 million even as it prepares for a takeover by Verizon.
The faded internet pioneer skipped its usual quarterly earnings call with analysts due to the pending takeover by the US telecommunication company, for which chief executive Marissa Mayer said Yahoo is busy preparing despite recent revelations about a major data breach that may affect the deal. “We launched several new products and showed solid financial performance across the board,” she said in an earnings release, which beat expectations despite only a slight rise in revenue. Shares were up 1.49 percent to $42.30 in after-market trades following the earnings report release, reflecting confidence the breach is not prompting a significant number of users to abandon Yahoo.
Revenue for the quarter that ended on Sept. 30 came to $1.3 billion, up from the $1.2 billion in the same period a year earlier.
Mobile revenue during the quarter reached $396 million, up from $271 million the previous year.
The boost in profits came from cutting workers and costs, not from the strength of its core business.
They hit the mark nevertheless, according to independent Silicon Valley analyst Rob Enderle.
“For the most part, people were expecting a burning crater where Yahoo used to be,” he said. “This is the kind of financial report they needed to not increase the probability that Verizon runs away screaming from the deal.”
The beleaguered internet company agreed in July to sell its core assets to Verizon for $4.8 billion, ending a 20-year run as an independent company.
