[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 17 October 2006, 22:20 GMT 23:20 UK
Yahoo 'unhappy' with performance
Yahoo weather page from a TiVo recorder
Yahoo is facing some squalls at the moment
Yahoo bosses have said they are dissatisfied with its performance after seeing quarterly profits fall 38% to $158m (84.4m).

The internet search and media firm has been under growing pressure as analysts worry about technical difficulties and the challenge posed by rival Google.

They feel Yahoo is not meeting its advertisers' needs as effectively as rivals and product development is lax.

But sales still rose 19% to $1.58bn in the three months to September.

Strategic questions

The third-quarter results were in line with market expectations and the firm's shares dipped only marginally in trading.

"While we are tremendously excited about many things happening at Yahoo, we are not satisfied with our third quarter financial performance," chairman Terry Semel said.

Discounting ad commissions, sales for the period actually slid to $1.1bn.

Yahoo warned the market last month that its profits would be lower than expected, citing weakness in the car advertising market.

This warning raised concerns that the seeming slowdown in the US economy may disproportionately affect online media businesses.

Analysts have been questioning Yahoo's long-term strategy, fearing that it is less nimble on its feet than some of its rivals.

Google's $1.6bn acquisition of YouTube has compounded the pressure on Yahoo, despite the latter remaining the market's most visited website.

Advert worries hit Yahoo shares
19 Sep 06 |  Business
Yahoo opens up its e-mail program
02 Oct 06 |  Technology
Yahoo search tools get personal
27 Apr 05 |  Technology
Yahoo, Microsoft tie message knot
13 Jul 06 |  Technology

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific