News
Struggling Internet company reports jump in profit, but core revenue declines.
Yahoo late on Tuesday reported strong growth in third quarter earnings despite the high-profile hack that could yet have an impact on its acquisition by Verizon.
Revenue in the three months to 30 September totalled $1.31 billion (€1.19 billion), up from $1.23 billion a year ago. However, revenue after traffic acquisition costs (TACs) came in at $857 million, down from $1 billion.
Yahoo’s operating loss narrowed to $52 million from $86 million, while net profit increased to $163 million, or $0.17 per share, from $76 million, or $0.08 per share in the third quarter of 2015. The Wall Street Journal cited a Thomson Reuters analyst poll that expected Yahoo to report net earnings of $0.14 per share.
In a statement, Yahoo CEO Marissa Mayer said she was pleased with her company’s solid financial performance.
"In addition to our continued efforts to strengthen our business, we are busy preparing for integration with Verizon," she said.
That process has been complicated by the fact that Yahoo recently disclosed that a hack in 2014 has compromised the personal information of 500 million users.
Last week, Verizon general counsel Craig Silliman said the cyber attack represented a material event that could alter the terms of the $4.8 billion deal. The comment was made amid rumours that Verizon wants to slash the purchase price by as much as $1 billion.
"We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users’ lives," Mayer said on Tuesday.
"To that end, we take deep responsibility in protecting our users and the security of their information. We’re working hard to retain their trust and are heartened by their continued loyalty," she said.
Yahoo opted not to host an investor call for its third quarter results due to the pending Verizon deal, thereby avoiding any difficult questions about the hack and its consequences. With Verizon publishing its latest quarterly results on Thursday, more information about the fallout could come to light.
