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News, 11 October 2000

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