Yahoo reports first profit in six quarters

Claiming it not only survived but moved past the dot-com bust, Internet media company Yahoo Inc. Wednesday reported a second-quarter profit. The Sunnyvale, California, company credited its positive earnings on its fee collecting services such as HotJobs as well as cost-cutting measures.

Yahoo posted net income of US $21.4 million, for the quarter ended June 30, compared with a net loss of $48.5 million for the same period last year, the company said in a statement. Yahoo posted net income losses for the previous five quarters.

Yahoo reported earnings per share of $0.03, beating by $0.01 the consensus earnings estimate of analysts polled by Thomson Financial/First Call.

Quarterly net revenue came in at $225.8 million, a 24 percent increase over the $182.2 million reported in the second quarter of last year, Yahoo said.

Despite a 4 percent decline in advertising revenue, the company said an increase in electronic-commerce transactions and its decision to begin collecting fees for such services as Yahoo! Personals and other listing services created the turnaround. Transactions revenues totaled $16 million for the quarter, a 179 percent increase compared to the same period last year, Yahoo said.

Fees, listings and transactions generated 40 percent of Yahoo's quarterly revenue, Yahoo Chairman and Chief Executive Officer Terry Semel said in a conference call recorded on the company's Web site.

According to Semel, Yahoo had 1 million paying customers at the end of the second quarter, up from 600,000 at the end of the first quarter.

Revenue from its non-U.S. operations increased by 16 percent, or $38.3 million, over the same period last year, and comprised 17 percent of the company's total revenue, Yahoo said. U.S. revenue for the quarter was $187.5 million, a 26 percent increase compared to the same period last year, Yahoo said.

The company will continue its focus on generating more revenue per user, and expects revenue for the third quarter 2002 to be between $225 million and $250 million, Yahoo said.

Yahoo may also face further cost cutting, Semel indicated. Yahoo "may streamline aspects of our network that no longer resonate with our users," Semel said.

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