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[SeriousMoney]

Yahoo's Profit Drops as Revenue Surges With Online Ad Boom
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
April 18, 2006 5:37 p.m.

Yahoo Inc.'s net income declined 22%, weighed down by stock-options expenses, but revenue surged as the Internet portal continued to ride the wave in Internet advertising.

Yahoo, based in Sunnyvale, Calif., posted net income of $159.9 million, or 11 cents a share, compared with $204.6 million, or 14 cents a share, in the same quarter last year.

Excluding stock compensation expenses, Yahoo said earnings were $231 million, or 15 cents a share. That compares with adjusted earnings of $195 million, or 13 cents a share, in the year-earlier period.

Revenue surged 34% to $1.57 billion from $1.17 billion in the year earlier quarter. Sales excluding commissions paid to marketing partners totaled $1.09 billion, compared with $821 million in the year-earlier period.

Yahoo had forecast revenue of $1.04 billion to $1.1 billion, excluding marketing commissions. On that basis, First Call pegged revenue at $1.08 billion, compared with $820.8 million in the same quarter last year.

Although Yahoo's top line has been enjoying big growth thanks to the boom in Internet advertising, competition from archrival Google Inc. could cut into some of those gains, particularly in the area of search-related ads, where Google dominates.

Yahoo reported results after the close of trading Tuesday. Shares rose 33 cents to $31.30 in 4 p.m. trading on the Nasdaq Stock Market.

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