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Yahoo Stocks Soar on $550 Million Advertising Revenue

Yahoo Stocks Soar on $550 Million Advertising Revenue

Yahoo shares soared 14% Thursday after the company reported quarterly results that blew past analysts’ estimates and Yahoo also announced a stock split. A resurgence in online advertising and continued growth in paid subscriptions ignited the results, which were reported after the market closed.

The Internet media company earned $101 million, or 14 cents a share, compared with $47 million, or 8 cents, a year ago.

Revenue, excluding ad revenue that Yahoo shares with distribution partners, nearly doubled to $550 million for its first quarter ended March 31. Sales were boosted by Yahoo’s acquisition of Web advertising-driven search engine Overture Services last year. As a result, Yahoo revised its 2004 revenue projections upward to $2.4 billion to $2.5 billion. That, too, eclipsed analysts’ projections.

eMarketer lends these statistics on paid search and how it is leading to a rebirth of online advertising:

* Yahoo!’s 2003 global online advertising revenues, at $1.2 billion, represent 12.8% of worldwide online advertising revenues.

*The ‘big three’ portals, namely Yahoo!, MSN and AOL, accounted for 31% of the worldwide total of $9.4 billion in online ad revenues last year.

*Of the $7.2 billion total US online ad revenues in 2003, paid search took in $2.3 billion, or 31.5%.

Yahoo CEO Terry Semel called it “the most successful quarter by far” in the company’s 10-year history. “If you can’t tell, I have a smile on my face,” he said in a conference call. “The numbers speak for themselves.”

Category SEO
SEJ STAFF Loren Baker Founder at Foundation Digital

Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing ...

Yahoo Stocks Soar on $550 Million Advertising Revenue

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