Yahoo! reported Tuesday that its net profit more than doubled in the final three months of last year, despite a slip in revenue due to its online search deal with Microsoft. Yahoo! made a net profit of $312 million on revenue of $1.52 billion in the recently-ended fiscal quarter, as compared to $153 million in net profit on revenue of $1.73 billion in the same period a year earlier.
"We just completed a very encouraging quarter and year for Yahoo!, where we saw our plans to turn around the company gain momentum," Yahoo! chief executive Carol Bartz said in a release that accompanied the earnings results. Her upbeat comment came on the same day that Yahoo! said it was laying off one percent of its workforce, or some 130 employees, in the latest job cuts at the struggling Internet portal.
"The personnel changes we are making are part of our ongoing strategy to best position Yahoo! for revenue growth and margin expansion." a Yahoo! spokeswoman said in a statement. "We'll continue to hire on a global basis to support our key priorities." The company announced in December that it was cutting some 600 jobs in its third wave of layoffs since late 2008.
Yahoo! has been seeking to carve out an identity as it struggles to compete with Google and Facebook on the Web. Display advertising at the core of Yahoo! revenue grew 17 percent in the quarter, but money from ads was shared with Microsoft under the terms of a deal that has Bing powering online searches at the California firm's websites.
"We completed the important North America search transition to Microsoft on schedule and with high quality," Bartz said. Microsoft gets 12 percent of Yahoo!'s net revenue, which accounts for money paid to websites that route Internet traffic to Yahoo!, in markets where the Bing transition has taken place. Yahoo! revenue minus "traffic acquisition costs" was $1.21 billion in the final quarter of last year as compared to 1.26 in the final three months of 2009.
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