Internet portal giant Yahoo! swung back into the black at last in its third quarter thanks to a 22% leap in advertising revenues.

The company posted net income of $28.9 million (€29.4m; £18.5m), up from a $24.1m loss in the same three months last year. Revenues increased from $166.1m to $248.8m, while operating income jumped from a $26.4m deficit to $29.5m profit.

Despite recent attempts to find other sources of cash, advertising still accounts for the bulk of Yahoo!’s sales, with marketing services generating $147.4m of its revenues, up from $120.7m last time.

This increase is partly the result of an agreement made last year to charge advertisers for prominent placement in search listings. This service attracted between $30m and $35m in the third quarter.

Among Yahoo!’s other revenue sources, fees and listings made $83.1m, up from $37m last year, while e-commerce contributed $18.3m, up from $8.4m.

The jump in sales prompted the portal to raise its 2002 revenue forecasts to between $930m and $955m, compared with previous expectations of $900m to $940m.

Data sourced from: multiple sources; additional content by WARC staff