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Yahoo Q3 net income shoots up sharply on part stake sale in Alibaba

Yahoo Q3 net income shoots up sharply on part stake sale in Alibaba
Internet giant Yahoo Inc has reported a staggering net income of USD 3.16 billion in the three months ended 30 September  2012 largely due to sale of part of its stake in Chinese e-commerce portal Alibaba Group Holding Ltd.

In the year-ago period, the company had a net income of USD 293.29 million, Yahoo said in a statement.

However, the company’s revenue fell by one per cent to USD 1.20 billion in the July-September quarter of 2012.

Marissa Mayer, who joined Yahoo in July as CEO after serving a top Google executive, said, ‘Yahoo had a solid third quarter, and we are encouraged by the stabilisation in search and display revenue’.

‘We’re taking important steps to position Yahoo for long-term success, and we are confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders,’ she added.

The company’s quarterly profit surged as Yahoo has closed initial stage of its share repurchase agreement with Alibaba, receiving pre-tax proceeds of a total USD 7.6 billion, including USD 6.3 billion in cash and the remaining USD 800 million in preferred shares.

Yahoo said it plans to give 85 per cent of it, after taxes, back to shareholders.
PTI

PTI

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