Yahoo! Posts $53.6m Net Loss but Gets Bullish

11 April 2002

The downturn in online advertising continues to afflict world-leading internet portal Yahoo! which on Wednesday posted its sixth successive quarterly loss.

In the three months to March 31, a net loss of $53.6 million (€60.95m; £37.36m), or 9 cents a share, drained from the company’s coffers. The result compares disappointingly alongside the $11m (2 cents) loss recorded for the same period in 2001.

Revised accounting policies cost Yahoo! $64m, without which it would have realised a net profit of $11.5m (2 cents) in line with expectations. Despite the advertising climate, revenues rose from $180m to $192m; while EBITDA (earnings before interest, tax depreciation and amortization) reached $24m, exceeding expectations and up from $1m a year ago.

Said chairman/ceo Terry Semel: “We are well positioned to maintain our growth and to achieve our goal of more than doubling EBITDA in 2002 from 2001 levels. Our results show momentum and progress towards our goal to maximise long-term free cash flow. This quarter also demonstrated the growing success of our monetisation strategy.”

Second-quarter revenues are predicted at between $205m and $225m, and the full-year forecast is in the range $870m to $910m.

Data sourced from: Financial Times; additional content by WARC staff