During the first quarter under the new leadership of their new CEO, Marissa Mayer, Yahoo has reported a 2% rise in revenues to $1.09bn, versus $1.07bn for the same period in 2011. Net profit in the third quarter soared to $3.2bn, up from $298m for the same period last year.
The increase in profits is largely due to the sale of Yahoo’s stake in Chinese e-commerce business Alibaba, without the sale Yahoo would have achieved incomes of $177m.
Display revenue for this quarter was $452m, flat compared with the third quarter in 2011 and search revenue accounted for $414m in revenue, an 11% increase over the same period last year.
These have been the first quarter results to be released since Marissa Mayer joined Yahoo as CEO back in July. Mayer said that Yahoo “hasn’t capitalized” on the mobile opportunity: “We haven’t effectively optimized our websites, we’ve underinvested in our mobile front-end development and we’ve splintered our brands. All of this needs to change”.
According to the company, Yahoo digital properties still have approximately 700 million monthly visitors. On this topic, Mayer also said Yahoo was well positioned in mobile because of its content verticals, such as finance and sport, which consumers wanted to access on their smartphone devices: “We’re taking important steps to position Yahoo for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.”