Yahoo Tops Street Forecasts

Yahoo! Inc. on Wednesday reported a small second-quarter profit, beating revised Wall Street expectations by a penny as new CEO Terry Semel outlined plans to boost revenue.

The Internet media company produced strong growth in user and usage numbers, but the advertising-dependent company was hit hard by the softening ad market. Pro forma net income for the quarter ending June 30 was $8.7 million, or a penny a share, beating industry forecasts of a break-even second quarter. Including one-off restructuring and acquisition-related charges, the loss was $48 million.

Net revenue for the quarter totaled $182 million, down from $272 million a year earlier. In his inaugural earnings conference call, former Warner Bros. co-chairman Semel, who joined Yahoo! in April, presented a refocused advertising strategy and emphasized the need to build nonadvertising revenue.

The Hollywood Reporter