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Yahoo Files A Net Loss Of $22 Million In Second Quarter

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Earnings and earnings throughout the day ! And its Yahoo this time. Even though Yahoo seems to have stabilised its revenue streams ever since Marissa Mayer took over as the CEO, the internet giant still struggles to step into the profit segment and has reported a net loss of $22 million in the second quarter.

Yahoo filed a net loss of $22 million, a surprising drop from a profit of $270 million it posted a year ago, while its net revenue remained unchanged from the previous year at $1.04 billion. The company earned $1.04 billion in net revenue in Q1 2015. 

Yahoo has been struggling in recent years since losing its lead in Internet search to Google, and has been aiming for new niches under Mayer’s leadership. In fact, she seems to be contended with the revenue growth and hopes that Yahoo will soon enter into profit segment.

A major factor in Yahoo’s expense issues involve traffic acquisition costs, which soared to $200 million, up from $44 million in Q2 2014.

Analysts will say that the first thing a new CEO has to do to improve the fortunes of a slipping company is to stabilize and maintain current revenue before it can grow. And that has already been done by Mayer. Moreover, she isn;t that ‘new CEO’ anymore.

A major proportion of Yahoo’s earnings came from mobile advertising, a segment where Yahoo has put extensive efforts. The company garnered $252 million in this area, a notable 54 percent increase year-over-year. In fact, mobile made up a record 22 percent of the company’s ad-supported revenue in this most recent financial period.

Mayer said-

Our Mavens investment businesses across mobile, video, native and social grew to nearly $US400 million in revenue this quarter, delivering 60 per cent … growth year-over-year.

However, Yahoo’ search and display ads businesses continues to slump and revenue from these two core business amounted to $725 million, down from $742 million a year ago. Soon after Yahoo presented these figures, its stock fell 55 cents, or 1.4 percent, to $39.18 in extended trading.

Yahoo earlier this year filed plans to spin off its remaining 384 million Alibaba shares into a separate company that will be called Aabaco. Yahoo is awaiting a ruling by the US Internal Revenue Service about what portion of the transaction will be tax-free.


 

Senior Writer


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