Infotech Lead Asia: Yahoo CEO Marissa Mayer has failed to come out with impressive financial result in the first quarter of 2013, an indication that its big rivals Google and Facebook further strengthening their presence in the online advt. business.
Yahoo’s revenue declined 7 percent to $1.14 billion for the first quarter of 2013.
Yahoo’s net earnings for the first quarter of 2013 increased 36 percent to $390 million.
The poor financial performance is despite announcing a number of initiatives including Yahoo’s association with Google. Recently, Yahoo announced a non-exclusive agreement with Google to display ads on various Yahoo properties and certain co-branded sites using Google’s AdSense for content and AdMob services.
Yahoo CEO Marissa Mayer said: “We are moving quickly to roll out beautifully designed, more intuitive experiences for our users. I’m confident that the improvements we’re making to our products will set up the company for long-term growth.”
Yahoo’s display revenue decreased 11 percent to $455 million for the first quarter of 2013.
The number of advts. sold (excluding Korea) decreased approximately 7 percent.
Price-per-Ad (excluding Korea) decreased approximately 2 percent.
Search revenue decreased 10 percent to $425 million for the first quarter of 2013.
Paid Clicks (excluding Korea) increased approximately 16 percent.
Price-per-Click (excluding Korea) decreased approximately 7 percent.
Google’s ad revenues have been climbing by about 20 percent in recent quarters while Facebook’s has been surging by about 40 percent.
Google is scheduled to report its first-quarter results Thursday, while Facebook plans to post its numbers on May 1.
Yahoo also has been lagging the growth in the overall ad market, a trend expected to continue at least through the rest of this year. In Yahoo’s main market, the U.S., the company’s ad revenue this year is expected to increase by about 3 percent, according to the research firm eMarketer.