Yahoo’s Q1 Ad Revenue Grows

NEW YORK Yahoo recorded a 38 percent year-over-year rise in first-quarter advertising revenue, thanks in part to an increase in sponsored-search services.

The Sunnyvale, Calif.-based Web portal said Wednesday that Q1 revenue from marketing services totaled $190 million, up from about $138 million in the
same period a year ago. The boost resulted from a combination of a strong increase in revenue from its sponsored search services, as well as growth in the balance of its global marketing services revenue. In fourth-quarter 2002, Yahoo’s ad revenue reached $177.5 million.

Yahoo’s total net revenue for the first quarter totaled $282.9 million, a 47 percent increase versus $192.7 million a year ago. Net income for the quarter was $46.7 million, or 8 cents per share, compared with a loss of $53.6 million, or 9 cents per share, in the year-earlier period.

Over the past couple of years, Yahoo has taken steps to diversify its revenue stream beyond online advertising. Those efforts appear to be paying off as first-quarter revenue from the Internet company’s fees-related services, including its dial-up and DSL products, rose 61 percent to $63.7 million. Meanwhile, Q1 year-over-year revenue for its listings services soared 89 percent to $29.3 million. That significant boost was driven primarily by the incremental contribution of revenue from HotJobs, which was acquired in February 2002.

Yahoo shares (YHOO) closed on the Nasdaq Wednesday at $22.87, down 94 cents or 4 percent. The stock’s 52-week high is $25.25 and 52-week low is $8.94.