Yahoo just released earnings for the second quarter. Total revenues dropped 13 percent to $1.5 billion. After paying partner sites' traffic acquisition costs (TAC), its take-home revenue was $1.1 billion. Operating income fell 17 percent to $101 million, and net income fell a whopping 78 percent to $118 million (but much of that difference was due to a $401 million non-cash gain Yahoo took in the first quarter related to its stake in Alibaba, which had an IPO).
CEO Carol Bartz is still trying to rein in costs. Yahoo also announced a new round of layoffs, which will affect 5 percent of its workforce (around 675 people out of 13,500). Those affected will be notified within the next two weeks. This is becoming a regular habit for her. During her first earnings call last quarter, she also tried to please Wall Street with 5 percent layoffs.
Yahoo’s search advertising revenues on Yahoo-owned sites declined 15 percent to $359 million, while display advertising on owned and operated sites declined 14 percent to $393 million. Yahoo announced a deal with AT&T to sell local online ads.
