Yahoo on Tuesday posted declines in revenues and profits during CEO Carol Bartz’s first three months on the job. Yahoo did meet analyst estimates, but the news wasn’t good.
Revenue fell to $1.58 billion for the first quarter, a 13 percent decrease from a year ago. Net income was $118.7 million, or eight cents a share, compared with $536.8 million, or 37 cents a share, a year ago.
“Yahoo is not immune to the ongoing economic downturn, but careful cost management in the first quarter allowed our operating cash flow to come in near the high end of our outlook range,” Bartz said. “While we experienced pressure in both display and search advertising in the first quarter, we believe Yahoo remains one of the most compelling advertising buys on the Internet. With our leading audience properties, substantial reach and innovative advertising solutions, we are confident Yahoo will be well positioned when online brand advertising resumes its growth.”
Across-the-Board Declines
Yahoo’s marketing-services revenues declined 12 percent and fee revenues declined 20 percent. As expected, the effects of currency-rate fluctuations, the sale of Kelkoo and lower revenues from broadband partnerships, voice over IP services, and subscription music offerings negatively impacted revenues.
Marketing-services revenues from owned and operated sites were $872 million for the first quarter, a 10 percent decrease compared to $966 million for the same period of 2008. The decrease was driven by a three percent decline in search advertising revenue and a 13 percent decline in display advertising revenue.
Marketing-services revenues from affiliate sites were $511 million for the first quarter, a 16 percent decrease compared to $606 million for the same period a year ago. The company said the decrease was driven primarily by efforts to improve traffic quality and lower revenue per search.
“Yahoo’s balance sheet remains strong, and we are continuing to generate…