In the III quarter Yahoo’s profit has become higher than expected
Yahoo Inc has completed the negotiations with Verizon Communications Inc regarding the sale of its main subdivision and published a report about the adjusted quarterly profit that exceeded the expectations of the experts. This has strengthened the company’s position – previously Yahoo experienced the large data leakage.
The net profit has risen to $ 162.8 million for the III quarter, which ended on September 30. Last year the net profit for the III quarter was $ 76.3 million.
The company, apart from certain balance sheet items, has earned 20 cents per share, while the analysts’ forecast predicted the value of 14 cents.
The revenue of Mavens has increased by 24.2 percent, amounting to $ 524 million. It is a subdivision of the company, which is engaged in promotion of mobile, hidden, social and video advertising. The company’s CEO Marissa Mayer called Mavens the developing subdivision.
The total revenue has increased by 6.5 per cent, amounting to $ 1.31 billion, slightly exceeding the consensus forecast of the experts, who were interviewed by Reuters. Meanwhile, the revenue, less the payments to partner sites, has fallen to $ 857.7 million (previously the revenue was $ 1 billion).
The Verizon is planning to unite the search engine, e-mail and a messenger as well as the Yahoo’s advertising technology with the AOL subdivision, which Yahoo bought in 2015 for the sum of $ 4.4 billion.
Yahoo’s deal with Verizon Communications Inc, the completion of which has been scheduled for early 2017, means that Yahoo no longer exists as an operating company. Its owners still possess the 15-percent share in the Chinese giant of the e-commerce Alibaba Group Holding Ltd and the share of 35.5 percent in Yahoo Japan Corp.