Yahoo’s quarterly earnings double, revenue down 12%
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Yahoo’s fourth-quarter 2010 profit more than doubled while revenue sank 12%.
The earnings jump can be attributed, in large part, to Yahoo President and Chief Executive Carol Bartz’s efforts to trim costs.
But while earnings are up, revenue declines have yet to reverse during Bartz’s tenure, which could result in more criticism being placed on the CEO as she is starting the second half of her four-year contract at the Web firm.
Hours before Yahoo’s quarterly report went public, news broke of a plan to cut 1% of its workforce, a move that follows a December decision to cut about 700 employees.
Yahoo also forecast that its revenue would drop 4% to 10% in the first quarter of 2011 from a year earlier. The former search giant, which now focuses more on Web services and Internet media, did not offer full-year projections.
Yahoo’s search engine is now powered by Microsoft Corp.’s Bing in an agreement that gives Microsoft $12 of every $100 in revenue the Sunnyvale, Calif., company brings in.
Bartz, in a statement, said progress could be seen for Yahoo.
‘We just completed a very encouraging quarter and year for Yahoo, where we saw our
plans to turn around the company gain momentum,’ she said.
Profit in the last three months of the year was $312 million, up from $153 million a year earlier. Revenue was $1.5 billion, down from $1.7 billion.
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-- Nathan Olivarez-Giles