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Yahoo reports $6.8bn profit on Alibaba sale(City A.M. (UK) Via Acquire Media NewsEdge) TECHNOLOGY giant Yahoo yesterday reported a modest increase in thirdquarter revenue, exceeding lacklustre Wall Street targets, as the internet firm's online display advertising business continued to struggle. But Yahoo did report profits of $6.8bn (£4.2bn) for the three months to 30 September, buoyed by earnings from its stake in Chinese e-commerce firm Alibaba. Yahoo was required to sell part of its stake ahead of Alibaba's stock market floatation, netting it $6.3bn. Shares of Yahoo rose three per cent to $41.40 in extended trading. For the first time, Yahoo disclosed its mobile revenue, which it said was more than $200m in the third quarter. Yahoo said it expected that gross mobile revenues for the full year would exceed $1.2bn. Yahoo's revenue, excluding fees shared with partner websites, was $1.094bn in the three months ended 30 September, a one per cent increase from $1.081bn in the same period a year ago. Analysts polled by Thomson Reuters I/B/E/S were looking for adjusted revenue of $1.045bn. Yahoo's revenue growth has stalled in recent years as its once-hot web portal and email service have lagged rivals such as Google and Facebook. Yahoo chief executive Marissa Mayer touted the firm's investments in its mobile offerings. "We have invested deeply in mobile and we are seeing those investments pay off," she said. "Not only are our mobile products attracting praise and engagement from users and industry awards, they are generating meaningful revenue for Yahoo." Reuters Yahoo! Inc 40.18 21Oct $ 41 40 39 38 37 20 Oct 21Oct 16 Oct 17 Oct (c) 2014 City A.M. |