Fuelled by growth in its Internet advertising business and paid services, Yahoo on Wednesday reported its largest revenue producing quarter in company history.
The Sunnyvale, California, company reported net income of US$50.8 million, or $0.08 per diluted share, on net revenue of $321.4 million for quarter ended June 30.
Net revenue was up 42 percent over the $225.8 million it reported a year ago. Net income was also up from last year's $21.4 million, or $0.03 per share.
Yahoo's results were in line with expectations of analysts polled by Thomson First Call, who had predicted earnings of $0.08 per share on revenues of $315.1 million.
The good results this quarter were a result of more balanced growth in advertising and sponsored search revenue, and the conversion of consumers and small businesses to fee-based services from free ones, the company said in a statement.
"More marketers are recognizing that the Internet is a great complement rather than a replacement for traditional forms of advertising such as televisions," Chief Executive Officer Terry Semel said in a conference call.
Revenue from Yahoo's marketing services, which include sponsored search and advertising via Yahoo's global marketing services, accounted for $219.2 million, the lion's share of Yahoo's revenue.
Fee-based services, including premium services like Yahoo Personals and SBC Yahoo DSL (Digital Subscriber Line) accounted for $69.9 million in revenue, a 43 percent increase over 2002.