Yahoo Profit More Than Triples; 4th-Quarter Forecast Is Boosted; Growth in Web Advertising And Acquisition Help Net; Selling Some Google Shares
Yahoo Inc. said third-quarter profit more than tripled and revenue more than doubled, helped by continued growth in search-related advertising and the effect of acquisitions, and raised its financial forecast for the fourth quarter.</br></br>The Sunnyvale, Calif., Internet company said net income rose to $253 million, or 17 cents a share, from $65 million, or five cents, a year earlier. Revenue rose to $907 million from $357 million, in part because of acquisitions.</br></br>More than half of Yahoo's net income came from the sale of a portion of its stake in rival Google Inc., following Google's August initial public offering. Yahoo said the sale of Google shares and related tax benefits boosted the bottom line by $129 million. Without the gain, Yahoo's per-share earnings would have been in line with the nine cents expected by analysts polled by Thomson First Call.</br></br>The results exceeded Yahoo's own forecast. Excluding commissions paid to marketing partners, Yahoo reported revenue of $655 million. The company had projected revenue on that basis of $610 million to $650 million.</br></br>Yahoo's results demonstrate continued growth in Internet-related commerce, even as more established technology companies struggled with a summer slowdown. They likely augur similarly strong results when Google reports for the first time as a public company next week.