San Francisco: Yahoo has reported that its profits sagged 11% under the weight of operating expenses despite the promising launch of its overhauled Panama advertising platform.
The stock price of the California-based Internet search engine company dropped more than 7% to $29.79 in after-hours trading following the release of the earnings figures.
Yahoo’s net income for the first quarter of 2007 was $142 million, or 10 cents a share, against $160 million, or 11 cents a share, in the same period a year earlier.
Revenues minus money Yahoo pays partners was $1.18 billion in the first quarter of 2007, a 9% increase from the $1.09 billion in revenues reported in the quarter last year.
Yahoo credited the launch of its overhauled Panama advertising programme near the end of the quarter with boosting ad sales.
Yahoo’s operating income for the first quarter of the year was $169 million, a 16% drop from the $201 million it brought in during the first three months of 2006.
“We continued to make good progress against the goals we outlined for the company last year and as a result, delivered a solid financial performance for the first quarter,” said Yahoo chief executive Terry Semel.
“We believe that Yahoo! is well positioned to capture the major growth opportunities we see ahead for the future.”