Yahoo profits double again

Internet giant Yahoo has more than doubled its profits thanks to its strategy of making more money from fee-based services.

The firm made $65.3m (£39.3m) between July and September, beating analyst forecasts and far outshadowing the $28.9m made in the same three months a year earlier.

The firm put its success down to strength in the advertising sector and premium services businesses.

Online advertising generated $245m, a 48% rise over the same period a year earlier.

Susan Decker, the firm's chief financial officer, trumpeted Yahoo's success in securing new clients.

"Our client base really says it all: we are supported by hundreds of blue-chip marketers, thousands of small and medium-sized businesses and millions of consumers around the world," Ms Decker said.

'Optimistic'

And Terry Semel, the firm's chief executive who was employed to engineer a turnaround at the firm following the dotcom crash of 2000, was upbeat about the long-term outlook.

"In this quarter our business grew stronger and better and we continue to remain optimistic about the future," said Mr Semel.

"As we more fully take advantage of the revenue potential across our entire business, we believe we can continue to meet our long-term objective for superior, consistent and sustainable growth."

The news pleased investors.

The stock had fallen during the day's trading, but added 16 cents to $38.95 cents in electronic trade following the announcement.