10 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...

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15 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
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told tod ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat today ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 m ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 201 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Da ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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