Higher costs dent Yahoo's profits

Yahoo is continuing with a review of its operations

Internet search engine Yahoo has seen its latest quarterly revenues beat market expectations, but profits disappoint due to higher costs.

Reporting its results for the three months to the end of September, Yahoo's revenues rose 12% to $1.8bn (£886m) from $1.6bn a year earlier.

Net profit fell 5% to $151m, eroded by sales and marketing expenses jumping to $877m from $697m last year.

Intel is now continuing with a top-to-bottom review of its operations.

It said it expects its full-year results for 2007 to be at the top end of market targets.

Yahoo makes most of its money from advertisers.