Yahoo bounces back

By Steve Malone

Posted on 10 Apr 2003 at 11:51

Internet portal Yahoo has reported a whopping 47 per cent increase in revenues for the first quarter of 2003. The total for the quarter is $282.9 million compared to $192.7 million for Q1 2002.

The company saw big increases for its paid-for services such as Yahoo! DSL and Dial products, Yahoo! Personals, and other premium services. The figures totalled $63.7 million, a 61 percent increase over last year. There was a similar picture for 'sponsored searches' that together with other marketing brought in $190.0 million, a 38 per cent increase. Finally, Listings revenues racked up $29.3 million, an 89 percent increase in revenues.

Yahoo is understandably bullish about the future and feels it has now turned the corner having suffered badly in the years following the dot.com crash. As a result it has revised its outlook for the year upwards. This is partly due to expected revenues from the Inktomi search engine which it bought at the beginning of the year.

As one of the most prominent brands on the internet, Yahoo is seen as a bellwether for the battered dot.com industry. Although best known as a search directory which has seen its market share eaten away by Google, it has now demonstrated that it is possible to migrate its user base away from 'free' services towards a paid for model - a transition which will be keenly examined by other internet sites which are looking to expand their revenue base.

At the same time, its not surrendering its core business of search listings to Google without a fight. The company has recently revamped its search facilities to try and claw back some of the advantages Google has gained over the past couple of years.