SUNNY VALE, California: Yahoo is to axe around one thousand jobs next month after revealing a 23% profits slide in its fiscal fourth quarter.

The struggling web portal said net income for the quarter fell to $206 million (€139m; £103m) from $269m a year ago. Operating income plunged 38% to $191m.

Revenues rose 8% to $1.8 billion. Marketing services, which include online ad sales, rose by 7% to $1.6bn.

Co-founder Jerry Yang (pictured)appointed last year to the role of ceo in place of Terry Semel, told analysts Yahoo was spending money to change its ad platform and operations.

He insisted the company had made progress, despite a less-than-rosy outlook for this year, and was in position to capture a significant piece of the growing ad market. 

Investors, however, were not impressed by Yang's downbeat view for 2008 and shares slumped 10% in after hours trading.

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