Yahoo's profits finally on the riseby Corina Ciubotaru

Internet giant Yahoo seems to be in a bit of financial trouble. Following the recent changes in management, which included appointing Jerry Yang as CEO and the departure of former Chief Sales Officer Wenda Millard, and Chief Technology Officer Farzad Nazem, Yahoo’s profits have continued to fall for six quarters in a row. Compared to last year’s second quarter, revenue rose by 8%, reaching $1.24 billion, as income remained nearly stable at 11 cents a share or $161 billion. Projected revenue for 2007, excluding payments to advertising partners, is somewhere between $4.9 billion and $5.19 billion and Mr. Yang seems determined to make changes wherever they are required. Yahoo stock has fallen by 30% since the end of 2005. Yahoo’s biggest challenge is to catch up with Google in the race for top spot in the United States online advertising market. So far, Google has been steadily increasing its share and is expected to control 27.4 percent of it this year, while Yahoo is struggling to reach 16.3 percent after the 17.8 it had last year. The US online ad market is expected to grow by 29 percent this year. Yahoo’s new Panama platform is reportedly doing very well, increasing the company’s income as expected, and it is thought to have more impact in the second quarter when it will be more widely implemented. Things may be looking up for Yahoo, but in the end it will all come down to the changes Jerry Yang has promised shareholders, who may otherwise decide to consider purchase offers from interested third parties like Microsoft.

related story: http://www.nytimes.com/2007/07/18/technology/18yahoo.html?8br

by Corina Ciubotaru for SigEx Telecom (http://sigex.com)

SigEx Telecom is quickly becoming the leading telebroadcasting communications provider allowing people to easily talk, view, upload and share video clips through free online TV broadcasting, free unlimited global calls, websites, blogs, video-mails and SMS. SigEx Telecom captures many add-on services for its clients generating royalties and fees in a broad spectrum of marketing services including public relations and promotions.