Yahoo! 3rd Quarter Results Lead to Panama
Wednesday, October 18, 2006Yahoo! released a disappointing 3rd quarter financial report Tuesday. According to the report, Yahoo!’s total revenues rose 19% over the same period last year but it’s net income dropped by almost $95 million.
Yahoo! Chief Terry Semel expressed his concern over a 37% drop in Yahoo!’s 3rd quarter profits bluntly stating, “I am not satisfied with our third quarter financial performance.â€
Semel’s comments came as part of a speech he delivered at the start of an open conference call with financial analysts and media. Blaming an overall slowing in online corporate advertising, Semel notes that a few of Yahoo!’s largest clients had redirected or limited their ad spending, “… because of their own business issues.â€
Some of those issues might stem from corporate testing of new and improved opportunities offered by social networking sites MySpace, YouTube and Facebook, using ad-budgets that would otherwise be directed to Yahoo!. “The market is going through a significant transition with new forms of inventory becoming available from a range of new and established competitors,” Semel said.
