10 October 2002 Internet portal pioneer Yahoo has registered a surprise increase in revenues in its third quarter, indicating that the decline in online advertising sales may be at an end. Yahoo also registered its second consecutive quarter of profitability.
The company said that it expects sales to continue rising into 2003. However, much of Yahoo’s increase in revenue can be attributed to a sharp rise in sales in its domestic American market, while international sales stagnated compared to the previous quarter.
For the year, chief financial officer Susan Decker said that she expects revenues to weigh in at between $930 million (€940.3m) and $955 million (€965.5m), rising to between $1.08 billion (€1.09bn) and $1.18 billion (€1.19bn) in 2003 – an increase of about 15%.
In the quarter to the end of September, Yahoo posted revenues of $248.8 million (€251.5m), up by 10% compared to the second quarter and by 50% compared to the same period a year earlier. Net income totalled $28.9 million (€29.2m), compared to $21.4 million (€21.6m) in the second quarter and a net loss of $24.1 million (€24.4m) in the same period a year earlier.
“Despite a challenging environment, it is clear Yahoo is benefiting from the strategy and plan we laid down nearly a year ago and that our efforts to position the company for sustainable, profitable growth are paying off,” said CEO Terry Semel.