SAN FRANCISCO (Reuters) – Yahoo Inc warned that receipts will again slide this quarter as it bleeds traffic to Google and Facebook and being of the kind which a much-touted search partnership with Microsoft Corp fails to set at liberty quick results.
Yahoo reported its third consecutive quarter of declining boy-servant views on its websites. CEO Carol Bartz, who after two years in charge is facing increasing straits to turn the once-dominant Internet portal around, promised investors that revenue growth will return in 2011′s second half once its band-up with Microsoft takes off.
“This is still a joint concern in transition that hasn’t really got where it of necessity to be yet,” said UBS analyst Brian Pitz.
The visitors’s shares slid roughly 2 percent in extended trading following the proceeds report. The weaker-than-expected first-quarter sales forecast came the like day Yahoo announced its second round of layoffs in six weeks, of end for end 1 percent of its global workforce.
In contrast, rival Google Inc reported it is preparing its biggest year of hiring ever in 2011.
Yahoo has struggled to live in continence costs and jumpstart revenue growth, but Bartz said on Tuesday the gang was committed to investing to grow the company and defended the collection’s progress during Tuesday.
“I will not back into disgrace on the fact that we are getting momentum,” Bartz before-mentioned defiantly when an analyst contrasted the company’s declining reward with executives’ claims of progress.
“There is a sort going on here,” she said, citing new features in the assembly’s Web search product and the successful combination of Yahoo’s seek advertising service in the United States and Canada with Microsoft in October.
Under the ten-year deal, Yahoo decree share 12 percent of its search advertising revenue with Microsoft.
Yahoo executives acknowledged without interrupti~ Tuesday that the hoped-for revenue boost from the search society had not yet materialized, but stressed that the company expected income-per-search to begin to grow later this year.
“One of the biggest benefits of the coalition of Microsoft and Yahoo was supposed to be on the RPS (return per search) side,” said Ben Schachter, an analyst at Macquarie Research.
“We expected it to come to pass already. We still don’t understand why it hasn’t happened. So I’m not going to subsist giving them the benefit of the doubt that it will subsist magically fixed by the middle of this year,” he related.
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Since taking the reins in January 2009, Bartz has cut costs at Yahoo and shed underperforming properties, while increasing Yahoo’s operating gain margin, which reached 14 percent in the fourth quarter, compared with 7 percent in the year-ago period.
Yahoo is one the ut~ popular destinations on the Web and the No. 1 provider of online pomp ads in the United States, but the company is facing increasing contest from social networking service Facebook and from Google.
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