By Telecom Lead Team: Yahoo has reported a
21 percent decrease in revenue at $4.98 billion in 2011 compared with $6.32
billion in 2010.
The significant decrease in revenue is
primarily due to the required change in revenue presentation related to the
search agreement and the associated revenue share with Microsoft.
Yahoo’s net profit is down by 14.8 percent
at $1.04 billion in 2011 as against $1.23 billion in 2010.
Income from operations increased 4 percent
to $800 million for the full year ended December 31, 2011, compared to $773
million for the same period of 2010.
Revenue excluding traffic acquisition costs
was $1,169 million for the fourth quarter of 2011, a 3 percent decrease from
the fourth quarter of 2010. Income from operations increased 10 percent to $242
million in the fourth quarter of 2011, compared to $220 million in the fourth
quarter of 2010.
Revenue was $1,324 million for the fourth
quarter of 2011, a 13 percent decrease from the fourth quarter of 2010.
“Yahoo continued to make progress in the
quarter with operating income increasing ten percent year over year. In 2012 we
will be aligning resources behind key areas of focus to enable us to move
aggressively in market and grow our business, bringing innovative new products
and experiences to both our users and advertisers,” said Scott Thompson, Yahoo! CEO.
Yahoo invested in technology platforms,
with additional sites across the Americas, EMEA and Asia Pacific going live on
the new global Yahoo! Publishing Platform, bringing the total more than 130.
Yahoo! acquired interclick, inc., which has
built an industry-leading data valuation platform optimized to work with large
data volumes across multiple providers and marketplaces.
Yahoo!, AOL and Microsoft announced
agreements to allow ad networks operated by the three companies to offer each
other’s premium nonreserved online display inventory to their respective
Revenue ex-TAC for the first quarter of
2012 is expected to be in the range of $1,025 million to $1,105 million. Based
on the terms of the Search Agreement with Microsoft, Microsoft retains a
revenue share of 12 percent of the net (after TAC) search revenue generated on
Yahoo! Properties and Affiliate sites in transitioned markets.