Yahoo! profits from cost cutting strategy
Yahoo! has seen a 244% surge in third quarter profits, with its cost cutting strategy offsetting a revenue drop of 12%.
The internet company reported profits of $186m (£113.6m) in the three months to September, up from $54m in the same period last year. Meanwhile revenue fell 12% to $1.58bn (£964m).
It has cut more than 2,000 jobs in the past year and has undergone a major rebrand and homepage redesign, supported by a $100m (£62m) global marketing campaign.
Yahoo! chief executive, Carol Bartz, says: “With new products like Yahoo! homepage, our brand revitalisation campaign and expansion in the Middle East through Maktoob.com, our execution is improving.
“Our efforts to reposition Yahoo! are still in the early stages, but we’re confident that our investments in the business will enable us to capitalise on growth opportunities as the economy recovers.”
Elsewhere, recent data from Hitwise has revealed that Microsoft’s Bing and Yahoo! have continued to lose market share to Google.
According to the internet research firm, Bing’s market share fell from 9.48% to 8.96% in September, despite the $80m (£48.3m) advertising budget allocated when the search engine was launched by Microsoft in June.
Yahoo! also saw a fall in share from 16.96% to 16.38% during the month while Google’s share rose from 70.24% to 71.08%.