Yahoo shares surge despite falling profits

  • 15 April 2014
  • From the section Business
Marissa Mayer in front of yahoo logo
Image caption Marissa Mayer has now been at the helm of Yahoo for just under two years

Shares in struggling internet search giant Yahoo jumped 9% despite a 20% fall in first-quarter earnings.

The company's profits of $312m (£187m) still beat expectations.

Yahoo also said revenue from display advertising increased by 2% to $409m, the first rise in some time. Overall, first quarter revenue was $1.1bn, the best since 2010.

"I am really pleased by our first-quarter performance," said chief executive Marissa Mayer in a statement.

Yahoo also reported that it had 430 million monthly mobile users who accessed Yahoo products, a crucial measure as the firm seeks to catch up with Facebook and Google to attract mobile advertising.

It also increased its total workforce by 8% to 12,400 global employees.


In contrast to Yahoo's earnings fall, Chinese internet giant Alibaba, of which Yahoo owns a 24% share, reported surging revenues.

These increased by 66% in the fourth quarter of 2013 to $3.06bn, compared with $1.84bn during the same period a year earlier.

Profits increased 110% to $1.4bn, compared with $642m a year earlier.

Alibaba's fourth quarter earnings were released as part of Yahoo's report.

Alibaba, China's largest internet company, is expected to complete a public share sale sometime this summer on a US exchange.

The share float could raise as much as $15bn, making it the biggest technology company debut since Facebook's stock sale in 2012.

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