Yahoo!’s new coup

Netco's Q2 revs, income double over '03

Online media bellwether Yahoo! reported continued strong growth in the second quarter as revenue and net income more than doubled from a year ago.

Company also confirmed a major exec change in its entertainment division. Media and entertainment senior VP Jim Moloshok will be taking on a new role as senior VP of entertainment and content acquisition.

In the new job, Moloshok, who formerly headed Internet entertainment for Warner Bros., will help expand Yahoo!’s partnerships with media companies in and out of Hollywood to offer more content online, particularly streaming video. He’ll also help build relationships with media companies to advertise on Yahoo!

A Yahoo! spokesman said Moloshok is currently transitioning and company will soon hire a new exec to oversee media and entertainment operations out of its Santa Monica office.

In the new post, Moloshok will work more directly with Yahoo! CEO and former Warner Bros. topper Terry Semel.

Revenue for the second quarter was $832 million, up 159% from a year earlier. Net income jumped 122% to $113 million.

As the online advertising biz continues to grow rapidly, marketing accounted for 83% of Yahoo!’s revenue at $691 million, up 215% from a year ago.

Fee-based revenue for Yahoo!’s premium services was up a comparatively small 49% to $104 million.

Company also slightly raised its full year guidance for revenue minus traffic acquisition costs to between $2.46 billion and $2.53 billion, up from a range of $2.41 billion-$2.52 billion. For the current quarter, Yahoo! is expecting revenue excluding traffic acquisition costs of $610 million-$650 million; second quarter figure was $609 million.

Netco prefers to use this measurement in order to discount the costs its Overture subsid pays to affiliates who run its search results.

While Yahoo! continues to dominate in online media, it’s facing increased pressure from competitor Microsoft in one of its most lucrative businesses, online search. Software giant launched its own advanced search engine last week, bringing it into the mix along with Yahoo! and Google. Sponsored links that run along with search engine results have been one of the fastest growing advertising segments.

Google, meanwhile, is expanding into areas traditionally dominated by Yahoo!, such as Web-based email.

Shares in Yahoo! fell slightly Wednesday to $32.60 but plummeted 11.5% in after-hours trading, indicating investor disappointment that the fast-growing company had only met expectations and not exceeded them, as it has in previous quarters.

After more than doubling in the past year, Yahoo! shares have fallen 10% in the past week amid concerns about growing competition and its high price-to-earnings ratio.

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