By Kate Hanaghan, 17 January 2002 07:43
NEWS For the fifth quarter in a row Yahoo!, the company which is largely dependent on advertising revenues, has been unable to escape substantial losses. It has, however, managed to significantly reduce these from almost $98m in the fourth quarter of 2000 to $8.7m in the equivalent quarter of 2001. And this is despite the fact that revenues slumped 40 per cent to $188.9m. The results are in contrast with fellow internet pioneer eBay. The popular auction site yesterday posted it 13th consecutive quarter of profit. Yahoo! is, however, upbeat about its prospects for the coming year issuing guidance that is at the upper end of analyst expectations. It is hoping that through diversification it can end its dependency on income from advertisers It has already introduced some fee-based services, which it says are a significant revenue-driver. The plan is to reduce advertising sales to just 50 per cent of its overall revenues. Yahoo! also announced yesterday that its President and COO Jeff Mallett will, as was widely anticipated, step down from his post later in the year.
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