Ad sales double Yahoo profits

Internet stalwart Yahoo has said profits more than doubled over the last three months, lifted by strong advertising sales and growth in subscription services

The internet portal said net profits for the three months to June came in at $50.8m (£30.5m), up from $21.4m a year earlier.

Sales were also higher, climbing to a record $321.4m from $225.8m during the same period last year.

Yahoo said the figures reflected the continued popularity of its sponsored web searches, which mention advertisers' names in conjunction with certain search results.

It also credited strong sales of fee-based services to consumers and small business users.

Sponsored web searches, introduced last year, have proved a runaway success with small business advertisers who cannot afford larger online promotions.

Upbeat outlook

Yahoo chairman and chief executive Terry Semel said the April to June period had been the strongest revenue-generating quarter in the company's history, and added that he was "optimistic" about the future.

The company raised its financial forecasts for 2003, saying sales for the year as a whole would fall within a range of $1.26bn to $1.31bn, up from its previous estimate of $1.14bn to 1.21bn.

Yahoo shares had closed 19 cents higher at $35.29, but fell back to $34.15 in after-hours trade.

Nasdaq-listed Yahoo has risen by about 14% over the past month in anticipation of strong second quarter results.