Yahoo shares jump despite profit fall

Written By Unknown on Rabu, 16 April 2014 | 23.59

15 April 2014 Last updated at 21:59

Shares in struggling internet search giant Yahoo jumped 9% despite a 20% fall in first-quarter earnings.

The company's profits of $312m (£187m) still beat expectations.

Yahoo also said revenue from display advertising increased by 2% to $409m, the first rise in some time. Overall, first quarter revenue was $1.1bn, the best since 2010.

"I am really pleased by our first-quarter performance," said chief executive Marissa Mayer in a statement.

Yahoo also reported that it had 430 million monthly mobile users who accessed Yahoo products, a crucial measure as the firm seeks to catch up with Facebook and Google to attract mobile advertising.

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It also increased its total workforce by 8% to 12,400 global employees.

Alibaba

In contrast to Yahoo's earnings fall, Chinese internet giant Alibaba, of which Yahoo owns a 24% share, reported surging revenues.

These increased by 66% in the fourth quarter of 2013 to $3.06bn, compared with $1.84bn during the same period a year earlier.

Profits increased 110% to $1.4bn, compared with $642m a year earlier.

Alibaba's fourth quarter earnings were released as part of Yahoo's report.

Alibaba, China's largest internet company, is expected to complete a public share sale sometime this summer on a US exchange.

The share float could raise as much as $15bn, making it the biggest technology company debut since Facebook's stock sale in 2012.


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