Page last updated at 22:33 GMT, Tuesday, 20 April 2010 23:33 UK

Advert uplift helps Yahoo profit

Microsoft and Yahoo signs in Times Square, New York
Microsoft sees its Yahoo deal as a way to compete with Google

An upturn in online advertising helped profits at internet firm Yahoo almost treble in the three months to the end of March.

Net profit rose to $310m (£200m) from $118m in the same period a year ago.

The company's takings were helped by its search and advertising partnership with Microsoft and sake of the Zimbra email service.

But after subtracting commissions paid to its advertising partners, Yahoo's revenue slipped slightly to $1.13bn.

This was below analyst's estimates - pushing Yahoo shares about 3% lower in after hours trading.

'Early turnaround'

The firm's chief financial officer, Tim Morse, said that its search advertising business "just didn't seem to grow at the pace they had previously".

However its display advertising business was strong, growing 20% year-on-year.

"High-quality advertisers are coming back," Mr Morse said. "We are still in the very early innings of this turnaround."

Earlier this year, Microsoft's plans to buy Yahoo's internet search and search advertising businesses were been cleared by both European and US regulators.

The European Commission ruled that the deal "would not significantly impede effective competition".

Under the deal, Yahoo's website uses a Microsoft's Bing search engine, and the two firms share the revenues.

Microsoft is seeking to increase its share of the search engine industry, which is dominated by Google.



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