Yahoo’s 4Q05 and 2005 numbers are out, with high double-digit increases in revenue, operating income, fees and marketing. But Yahoo failed to meet Wall Street’s expectations of 17 cents a share, instead coming in at 16 cents per share.
Some key earnings numbers:
– Marketing services revenue hit $1.3 billion for 4Q05, up 39 percent from the same quarter in 2004, while fees revenue — primarily for pre,ium services — of $186 million was up 39 percent year over year. Excluding traffic acquisition costs, revenue was $1.06 billion, up 36 percent.
– Adjusted 4Q05 net income was $247 million; the adjusted 2005 net was $854 million (58 cents per diluted share) compared to $525 million (36 cents per diluted share) for 2004.
– Yahoo’s traffic acquisition costs ran $433 million for 4Q05 and $1.56 billion for the year.
Update: Why did Yahoo’s stock price fall 13 percent in after-hours trading if the revenues look so good and 4Q05 profit was up 83 percent?Bloomberg reports that analysts were looking at the slowest sales growth in more than three years, among other factors. The most interesting quote from that story: Walter Price, fund manager, RCM Capital Management: “The history of Terry Semel at Yahoo from here will be how effective he is at monetizing the entertainment opportunities.” More from AP; MKTW & Interview with CFO Sue Decker.
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