Yahoo Quarterly Revenue Bolstered By Strong Ad Sales
Yahoo said sales in the first quarter gained as advertisers steered a greater portion of their budgets online. Gross revenue rose 34 percent to $1.57 billion.
Quarterly marketing services revenue was $1.381 billion, a 35 percent increase over last year's $1.025 billion. Fees revenue for the quarter was $186 million, 25 percent higher than $149 million for the same period last year.
Cash flow from operating activities for the first quarter of 2006 was $445 million, a 15 percent increase compared to $386 million for the same period last year.
Adjusted net income, excluding stock compensation expense, net of tax, recorded under the fair value method for the first quarter of 2006, was $231 million or $0.15 per diluted share. This compares to adjusted net income of $195 million or $0.13 per diluted share, excluding stock compensation expense, net of tax, recorded under the intrinsic value method and gains on the sale of certain investments and settlements, net of tax, for the same period of 2005.
Yahoo Entertainment was its fastest-growing channel year-over-year, increasing 76 percent from a three-month average monthly unique audience of 3.3 million to 5.8 million, according to Nielsen//NetRatings. Entertainment was followed by Yahoo Photos, which grew 40 percent, and Yahoo Education, which grew 36 percent in the first quarter year-over-year.
Overall Web traffic to Yahoo grew eight percent in the first quarter of this year compared to last year, from a three-month average monthly unique audience of 96.5 million 104.7 million, Nielsen reported.
Also on Tuesday, Yahoo said it acquired digital home software startup Meedio's technology assets, and will bring its small team of engineers in-house. The deal will likely bolster Yahoo's "Go" initiative, which is intended to expand the company's presence beyond consumers' computer screens into their living rooms and onto their mobile devices. The deal with "enable Yahoo to further its goal of extending beyond the browser and onto the connected devices throughout consumers' lives," said Yahoo spokeswoman Helena Maus in a written statement.