Yahoo!’s Q2 Profit More Than Doubles

NEW YORK Yahoo! reported this afternoon that its second-quarter net income more than doubled on revenue of $832 million.

The Sunnyvale, Calif.-based company posted Q2 net income of $113 million, or 8 cents per diluted share, up from $51 million, or 4 cents per diluted share, in the year-ago quarter. Revenue increased 159 percent to $832 million from $321 million in the year-earlier period, while revenue excluding traffic acquisition costs rose 90 percent to $609 million.

Despite the positive results, Yahoo!’s stock (YHOO) was down $3.85 or 11.8 percent at $28.75 in after-hours trading after dropping 62 cents or 1.3 percent to close the day on the Nasdaq at $32.60.

More than 80 percent of the Web portal’s overall revenue in Q2 came from advertising and marketing. Revenue from marketing services was $691 million, up 215 percent from $219 million during the same time last year. Yahoo! attributed the year-over-year growth to boosts in its organic marketing services revenue, as well as incremental revenue from acquisitions, including Overture, the commercial search company it purchased last October.

Second-quarter revenue from the Internet company’s fees-related services, including its dial-up and DSL products and Yahoo! Personals, rose 49 percent to $104 million as subscribers to those offerings grew from 3.5 million a year ago to 6.4 million today. Meanwhile, Q1 year-over-year revenue for its listings services was up 17 percent to $38 million, primarily due to increases in search and marketplace listings.