It doesn’t take much to figure out what staffers were yelling at Yahoo! on Wednesday, when the Internet portal giant posted its first profit in six quarters.
The company, headed by former Warner Bros. co-chairman Terry Semel, generated net income of $21.4 million on sales of $225.8 million for its second fiscal quarter. That compares to a net loss of $48.5 million and revenues of $182.2 million for the same period in 2001.
Yahoo!’s string of losses had prompted a major corporate restructuring of its management and businesses last year.
Fees generate growth
While advertising still accounts for two-thirds of Yahoo!’s total revenues (generating $135.7 million, down from 4% from $140.9 million last year), much of the quarter’s growth is attributed to revs from new fees that have been added to several areas of its site, including its personals service, auctions and classifieds listings. E-commerce also has grown 28% in the first three months of 2002.
Revenues from fees on services such as Yahoo! personals, as well as paid listings in search results, totaled $74.1 million in the quarter, up 109% from the year-ago quarter.
Despite the news, shares of Yahoo fell 51¢ a share to close at $12.19, a loss of 4%, as the Nasdaq closed down 2.5%.