Display advertising up 20% on year ago quarter
Yahoo! has reported revenues of $1.6bn for the first quarter of 2010, an increase of 1% compared to $1.58bn for the same period last year. Marketing services revenues increased 3% and fees revenues declined 11%, compared to the first quarter of 2009.
The company posted an operating income of $188m for the first quarter of 2010, compared to an operating income of $101m in the same period a year ago.
For the quarter ended March 31, 2010, the company posted a net income of $310m, compared to a net income of $118m for the same period last year. Net income per diluted share for the quarter was $0.22, compared to a net income per dilute share of $0.08 for the year ago quarter.
Yahoo!’s first quarter results its revenue-sharing search deal with Microsoft. It gained $78m in net reimbursements from Microsoft, including $43m for net transition cost reimbursements and $35m for search operating cost reimbursements.
Cash flow from operating activities for the first quarter of 2010 was $144m, a 45% decrease compared to $262m for the same period of 2009. Free cash flows were $33m for the quarter.
Carol Bartz, chief executive officer of Yahoo!, said: “We had a good quarter, delivering income from operations higher than our outlook. Thanks to our efforts, our search share has stabilised, and we grew display advertising by 20% year over year. More importantly, guaranteed display grew by 24% as advertisers took advantage of the science, art and scale that only Yahoo! can offer.”
The company expects revenue to be in the range of $1.6bn to $1.68bn for the second quarter of 2010. Operating income is expected to be in the range of $155m to $195m.