Thursday, July 21, 2011

Yahoo revenue slides to lowest since 2005: Woolworths of the network?

It is not good for Yahoo search.

Its latest financial results showed falling sales and earnings, which were largely on the stalling of display advertising business in the second quarter of 2011.
Historically applied, all terminal begins search. Total revenue has not been this low since the second quarter of 2005, and superimposed strategic with Yahoo trains specified by the tech media, back to the tech and then return to the media recently – such as Ross Levinsohn. This graph shows the familiar decline.
Google revenue (red) vs. Yahoo revenue (blue) - 1996 Q1, Q2 2011
Display advertising was once Yahoo's core business and how it could rely on the use. Repeated executive moves, low morale and a revenue-sharing agreement in search with Microsoft all have sucked the success of the company. Yahoo is now given back and display - not just some serious effort from Google just his rival benefit from the growth in advertising, Yahoo now sold on the display, but also Facebook, the % increased has its display ad CPC-74 in the last 12 months. (We can't plot Facebook's sales here, because it is a private company, but you can bet that it is another of the places gone, that Yahoo lost revenue to.)
Yahoo shares at the end of the day U.S. but fell an hour was back.
Second quarter of 2011:
• Turnover without traffic acquisition costs [it has made on websites for traffic the amount, the Yahoo numbers] amounted to $1. 076bn by 5% year on year.
• Net income amounted to 237 million $ of $213 m in the second quarter of 2010.
• Display advertising revenue increased by 2% from Q2 2010, although it had seen growth of 6% in the first quarter.
• Search revenue fell to 371 m $ 15% over last year.
By analysts:
• Zacks.com: "Zack's despite some optimism about growth in search advertising revenue, acknowledges that Carol Bartz' turnaround plan is moving very slowly."There are a few factors that will probably work against it. The first is the market in the small the growing importance of the Google ad network that constantly extended to medium-sized enterprises and enabled it to oust Yahoo! as the greatest player in the entire display ad market. We think, it is limited to satisfaction in the fact, that Yahoo is well positioned on the big players remains. "Seems the writing on the wall."
• Clayton Moran of benchmark in Florida: "it's almost hard to believe, they can continue the road which we had thought to disappoint expectations pretty weak, but they have done."
• Ben Schachter of the Macquire research: "they try to fix a lot a problems that need to be addressed, but how they address these issues unfortunately to dive new."
What is the solution?
Carol Bartz (since January 2009 in the top job) is the time to prove that Yahoo in terminal decline not running. Each passing Quartal-in the midst of increasingly negative reports - cuts its staff, executive changes, sales (goodbye delicious, owned by the boys, the YouTube created today) and seem to make no difference, not at all ambitious statements regarding the strategic direction of the company. That search/advertising deal with Microsoft is also not helping; Yahoo rebuked outright for pull down its revenue numbers due to the share has give Microsoft.
You can bet that plans are pretty advanced behind the scenes for fragmented Yahoo's new Ireland - namely his 43% stake in Chinese e-commerce group, Alibaba, high profile photo sharing site Flickr and the sale of advertising infrastructure. The question disappeared, as soon as the are, what's left, and, where any value once? Yahoo seems now only good for attracting eyeballs, but there are low-value. It has become the Woolworths in the Internet.
At $14.59 per share floating, schwindelnd those days of February 2008 as Jerry Yang proud for this offer, Yahoo buy now $31 per share or $44 billion headed. It now seems something of a Pyrrhic victory.

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