Yahoo revenue dips in Q2

Reuters News
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Posted: Jul 19, 2011 4:29 PM

SAN FRANCISCO (Reuters) - Yahoo Inc's net revenue declined slightly in the second quarter on weakness in its display advertising business, and shares of the Internet search company dropped roughly 2 percent in after-hours trading.

Yahoo reported net income of $237 million, or 18 cents a share, compared with $213 million, or 15 cents a share, in the year-earlier quarter.

The company forecast third-quarter net revenue, which excludes the fees that Yahoo pays to partner websites, of between $1.05 billion and $1.1 billion.

Yahoo is one of the most popular destinations on the Internet and a leading provider of online display ads in the United States, but the company is facing increasing competition from social networking service Facebook and continuing pressure from search leader Google.

Yahoo said net revenue in the second quarter was roughly $1.1 billion, compared with $1.13 billion in the year-earlier period

(Reporting by Alexei Oreskovic; Editing by Steve Orlofsky)