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Thursday, 17 January, 2002, 06:02 GMT
Yahoo still losing money
Yahoo graphic
Yahoo is trying to reduce its dependence on adverts
Internet portal Yahoo has been losing money for fifteen months straight, essentially because of extremely weak online advertising revenues, the company said.

"Most advertising agencies have said their spending this year will be flat and we're counting on that," said chief executive Terry Semel who took over when Tim Koogle resigned last spring.

But Yahoo's losses have narrowed, from $98m during the last three months of 2000 to just under $9m during the last three months of last year.

Yahoo reduced its losses despite a near 40% fall in earnings, from $311m during the 2000 autumn to $189m during the last three months of 2001.

This means the company's operating profits were three times greater than analysts had expected.

"It looks like they did a good job in growing revenues," said CIBC Oppenheimer analyst John Corcoran.

Diversification

The future looks brighter too, the company said, predicting sales and earnings in line with the most optimistic analysts' expectations.

The company has started charging for some of its services, and it has moved into new business areas to reduce its dependence on advertising revenue.

"It looks like things are improving," said Paul Kim, analyst at Kaufman Bros, adding that "2002 guidance is great".

As expected, Yahoo's president and operating officer, Jeff Mallett, will step down later this year, the company said.

Yahoo shares rose to $18.01 in after-hours trade, having closed down $1.60 at $17.87 before the market closed.

See also:

27 Dec 01 | Business
Yahoo enters jobs market
13 Dec 01 | Business
Yahoo trumps HotJobs bid
05 Nov 01 | Business
Monster.com earns its keep
15 Nov 01 | Business
Yahoo cuts 10% of its staff
15 Nov 01 | Business
Yahoo signs 'landmark' deal
11 Jul 01 | Business
Yahoo boost for tech investors
19 Jun 01 | Business
Yahoo Japan to launch ISP
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