The Optimiser



14 March 2005

Your personal source of Internet news

Advertising boom boosts Yahoo! profits



Internet firm Yahoo! has announced that its fourth-quarter profits more than doubled at the end of last year.

The search engine and advertising giant attributed the sharp increase in profits to a boom in online advertising and said that net income for the forth quarter was $373 million, up from $75 million for the same period last year.

The company claimed that the internet had reached a "tipping point" where money was following consumers online from television advertising.

"This was also the year in which we witnessed the beginning of a tipping point in advertising in which marketers address the continued shift in consumers' changing media habits by investing more of their marketing dollars online," Yahoo! chief executive Terry Semel said.

Yahoo! sold its stake in rival search engine Google over the quarter. Quarterly profits, excluding one-off sales of assets, rose to $187 million in the last three months of 2004, up 149 per cent on the previous year. Quarterly sales totalled $1.078 billion, a 62 per cent rise on 2003.

Advertising-related revenue rose 67 per cent from a year earlier and accounted for 85 per cent of Yahoo's revenue. Mr Semel said that search-related advertising and brand advertising, such as banner adverts, both grew strongly.

Yahoo! says it is the most-visited internet destination globally. The company forecasts full-year revenue to be between $3.36 billion and $3.56 billion.

20 January 2005

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