360° Coverage : Yahoo's 1Q highlighted by Alibaba, modest ad gains

2 Updates

Yahoo's 1Q highlighted by Alibaba, modest ad gains

Apr 15 2014, 5:42pm CDT | by

SAN FRANCISCO (AP) — Yahoo is still prospering from its lucrative investments in Asia while the Internet company's listless advertising sales are picking up, if ever so slightly, under...

Filed under: news

 
 
 

19 weeks ago

Yahoo's 1Q highlighted by Alibaba, modest ad gains

Apr 15 2014, 5:42pm CDT | by

SAN FRANCISCO (AP) — Yahoo is still prospering from its lucrative investments in Asia while the Internet company's listless advertising sales are picking up, if ever so slightly, under CEO Marissa Mayer.

The positive signs in the Yahoo's first-quarter report overshadowed a 20 percent decline in the company's earnings during the opening three months of the year.

The results released Tuesday highlight the contrasting performances of Yahoo's investment portfolio and the company's main business of running ad-supported online services.

Yahoo Inc. is making most of its money from its holdings in two Asian Internet companies — China's Alibaba Group and Yahoo Japan.

Meanwhile, the Sunnyvale, Calif. company has been struggling to sell more ads, even as marketers divert more of their budgets to the Internet. Most of those digital dollars, though, have been flowing toward Google Inc., the Internet's search leader, and Facebook Inc., the online social networking leader.

A 24 percent stake in Alibaba has turned into Yahoo's crown jewel as the Chinese company prepares to go public on the New York Stock Exchange later this year. Since selling Yahoo its stake for $1 billion in 2005, Alibaba has built a massive e-commerce network that caters to businesses and consumers in the world's most populous country.

Yahoo's report provided that latest tantalizing peek at how rapidly Alibaba has been growing. The numbers covered Alibaba's fourth quarter from last year because there is a three-month lag before Yahoo books its portion of Alibaba's income.

Alibaba's fourth-quarter earnings more than doubled from the previous year to $1.35 billion while its revenue surged 66 percent to $3.06 billion.

The stellar performance reinforced hopes that Alibaba's market value could range somewhere between $150 billion and $200 billion when it goes public. By comparison, Facebook started off with a market value of $104 billion in its highly anticipated Wall Street debut in 2012.

Yahoo is now in line for a huge windfall when it sells its Alibaba stake, providing money to expand its reach through acquisitions and buy back more of its stock. Yahoo has already spent $6 billion buying back its stock since the beginning of 2012.

The anticipated gain from the Alibaba investment is the main reason Yahoo's stock has more than doubled since Yahoo hired Mayer from Google in July 2012 to revive its ad sales.

Yahoo's stock gained $2.08, or about 6 percent, to $36.29 in Tuesday's extended trading. Even if the shares rally similarly in Wednesday's regular trading, the stock will remain below its 52-week high of $41.72 reached in early January.

Macquarie Securities analyst Benjamin Schachter estimates Yahoo's stakes in Alibaba and Yahoo Japan are worth nearly $29 per share. He values the rest of Yahoo's business at just $11 to $12 per share.

Mayer still hasn't been able to snap Yahoo out of an advertising funk that began six years ago, although some segments showed modest improvements in the first quarter. In a particularly heartening sign, Yahoo's display ad revenue crept up by 2 percent from the same time last year, after subtracting commissions from ad partners. That was the first uptick in Yahoo's first-quarter display ad revenue in three years.

"We believe we are moving from our core business being in decline to modest or stable growth," Mayer said in a video conference call.

Yahoo earned $312 million, or 29 cents per share, during the first three months of this year. That compared to $390 million, or 35 cents per share, at the same time last year.

If not for special items, Yahoo said it would have earned 38 cents per share. That was a penny above the average estimate among analysts surveyed by FactSet.

Revenue dipped 1 percent from last year to $1.13 billion.

After subtracting ad commission, Yahoo's revenue totaled $1.09 billion — about $20 million higher than analyst projections.

Yahoo expects its revenue for the current quarter ending in June to total about $1.08 billion, minus ad commissions. That would be 1 percent increase from last year.

 
Update
2

2 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new co ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday.
 
 
Japan to aid connectivity upgrade in northeast India
Tokyo, Sep 1 (IANS) India and Japan Monday decided to strengthen cooperation for improving connectivity and socio-economic development in northeastern states of India.
 
 
Three Ebola cases recorded in Nigeria oil hub
Abuja, Sep 1 (IANS) At least three cases of Ebola virus disease (EVD) have been recorded in Nigeria's oil hub of Port Harcourt, where a fatality was confirmed last week, the country's Minister of Health Onyebuchi Chukwu said here Monday.
 
 
India, Japan to elevate strategic partnership
Tokyo, Sep 1 (IANS) Prime Minister Narendra Modi Monday said relations with Japan were of the "highest priority" for his government and announced a slew of initiatives, including turning the strategic partnership into a "special" partnership and a fast-track channel for Japanese investors.
 
 
 

Latest from the Network

Lena Dunham condemns naked photo leak
Los Angeles, Sep 2 (IANS) Actress-writer Lena Dunham has condemned a mystery hacker who leaked nude photographs of celebrities, including actress Jennifer Lawrence. Lawrence hit headlines Sunday when intimate snaps of...
Read more on Celebrity Balla
 
Three children, teacher killed in China school stabbing
Beijing, Sep 2 (IANS) A stabbing spree in a Chinese school has left three children and a teacher dead Monday. Chen Yanfu, 43, who was upset that his daughter was not allowed to register at the school, rampaged through...
Read more on Politics Balla
 
Jennifer Aniston eases exercise regime
Los Angeles, Sep 2 (IANS) Actress Jennifer Aniston, who admits she's "eased up" her workout regime, says it's important to take time off from working hard in the gym to simply enjoy life sometimes. The 45-year-old,...
Read more on Celebrity Balla
 
Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday. The drug named Favipiravir and developed by a subsidiary of Fujifilm Holdings in...
Read more on Business Balla
 
Miley Cyrus: The internet is more damaging than drugs
Miley Cyrus thinks the internet ''hurts your brain'' more than drugs. The 21-year-old singer believes social media - such as Facebook and Instagram - causes more damage to your mental health than smoking cannabis. She...
Read more on Celebrity Balla
 
Britney Spears in contact with ex-boyfriend from 6 years ago
Britney Spears is reportedly in contact with her ex-boyfriend from six years ago. The 'Piece of Me' hitmaker only split from her beau David Lucado last week after it emerged he'd allegedly cheated on her and now the...
Read more on Celebrity Balla
 
Joan Rivers may end up 'as a vegetable' or in 'wheelchair'
Joan Rivers' doctors fear she may end up ''as a vegetable'' or ''needing a wheelchair'' after she suffered a cardiac arrest last week. The 81-year-old comedienne's relatives are reportedly preparing themselves for the...
Read more on Celebrity Balla
 
Kate Upton will 'pursue anyone' who shares naked photos of her
Kate Upton's lawyer will ''pursue anyone'' who shares naked pictures of her. Nude photographs of the 22-year-old model were reportedly leaked online after her mobile phone's online storage system iCloud was allegedly...
Read more on Celebrity Balla
 
'Ukrainian conflict has escalated into war'
Kiev, Sep 1 (IANS) Ukrainian Defence Minister Valeriy Geletey Monday said the conflict in eastern Ukraine between government troops and pro-independence insurgents has escalated into a "war". "A great war came at our...
Read more on Politics Balla
 
IS slogan found on school walls in Saudi Arabia
Riyadh, Sep 1 (IANS) Slogans praising Sunni militant group Islamic State (IS) were found on the walls of some schools in the Saudi Arabia capital following Saudi King Abdullah bin Abdulaziz's call for coordinated...
Read more on Politics Balla