Yahoo! Inc.'s first quarter comes in at 8 cents per share

April 10, 2003|By BLOOMBERG NEWS

SUNNYVALE, Calif. - Yahoo! Inc., owner of the world's most-used Internet site, rebounded to a $46.7 million first-quarter profit as more businesses paid to have their Web sites placed prominently in Internet search results.

Net income was 8 cents a share, compared with a year-earlier loss of $53.6 million, or 9 cents, Yahoo! said. Revenue rose 47 percent to $282.9 million from $192.7 million.

Chief Executive Officer Terry Semel has boosted revenue with Yahoo!'s search engine, used by 40 million people a month in the United States, by offering "sponsored" listings in which businesses pay to have their Web sites appear first in search results. Semel also has begun charging consumers for more services, including extra storage for e-mail and Yahoo!'s online dating service.

"It looks like it's above expectations," said Walter Price, a fund manager at Dresdner RCM Global Investors LLC. "I like everything about the quarter."

The first-quarter profit topped the average analyst estimate of 6 cents a share. Revenue exceeded the company's forecast by $275 million.

Yahoo!'s shares fell 94 cents to $22.87 on the Nasdaq stock market before the company released its results, but strengthened in extended trading. The stock has risen 40 percent this year.

Yahoo! raised its revenue forecast for all of 2003 to about $1.28 billion. The company previously had said it expected revenue of no more than $1.22 billion. Earnings before interest, taxes, depreciation and amortization may be as much as $380 million, Yahoo! said, compared with a previous forecast for as much as $330 million.

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