Yahoo! yesterday announced Q3 results that, as expected, hit record levels. However, the potential for future growth at the world’s largest internet portal is far from clear.
Net income rose to $81 million, double last year’s figures, while revenues nearly doubled to $296m and operating profits soared from $20m to $67m.
Meanwhile, internet traffic crossing Yahoo! sites rose from 680m page views per day in Q2 to 780m. Growth was especially strong in Japan, where traffic rose to 112m views a day last month from June’s average of 85m.
However, there was also a drop in advertisers seeking space on Yahoo! sites, something the firm blames on recent problems within e-commerce companies. Moreover, Yahoo! saw e-commerce transactions reach only a disappointing $1 billion.
The portal admitted it would need to devote more capital to marketing and new product development in the coming months and plans to hike marketing expenditure from 33%–34% of revenues to 33%–37%.
Yahoo! also announced a deal with Net2Phone to provide email on Yahoo! accounts over the phone.
News source: Financial Times