View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Data Centre
April 26, 2009

Yahoo profit plunges 78% in weak Q1

Plans to cut its workforce by 5%

By CBR Staff Writer

Yahoo has reported a 78% decline in net income at $118m for the first quarter 2009, compared to $537m in the year-ago quarter, on revenue down 13% at $1.6 billion.

It said it plans to cut its workforce by 5% after profit was hit by currency rate fluctuations, the sale of Kelkoo, and lower revenue from broadband partnerships, voice-over IP services, and subscription music offerings.

During the quarter, operating income declined 17% to $101m, while diluted EPS fell 80% to $0.08, compared to $0.37 in the first quarter of 2008.

Marketing services revenue declined 12% to $1.38 billion, with owned and operated sites revenue decreasing 10% to $872m and affiliate sites revenue decreasing 16% to $511m. Fees revenue fell 20% to $197m. Geographically, US revenue declined 9% to $1.2 billion, while international revenue fell 23% to $392m.

During the quarter, the company appointed former executive chairman of Autodesk Carol Bartz as chief executive, announced the departure of its CFO Blake Jorgensen and head of mobile unit Marco Boerries as part of a management restructuring to stem declining profits.

Carol Bartz said: Yahoo is not immune to the ongoing economic downturn, but careful cost management in the first quarter allowed our operating cash flow to come in near the high end of our outlook range. We experienced pressure in both display and search advertising in the first quarter. With our audience properties, reach and advertising solutions, we are confident Yahoo! will be well positioned when online brand advertising resumes its growth.

In the second quarter it expects revenue in the range of $1.43 billion to $1.63 billion.

Content from our partners
Why food manufacturers must pursue greater visibility and agility
How to define an empowered chief data officer
Financial management can be onerous for CFOs, but new tech is helping lighten the load

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.