Yahoo! has announced its third quarter results, with chairman Terry Semel calling them unsatisfactory.
However, Yahoo! saw its revenues increase 19% for Q3, compared to the same period in 2005, reaching $1,580 million.
Marketing services revenue was $1,370 million for the third quarter of 2006, an 18% increase compared to $1,160 million for the same period of 2005.
Revenues excluding traffic acquisition costs (TAC) were $1,121 million for the third quarter of 2006, a 20% increase compared to $932 million for the same period of 2005.
Operating income for the third quarter of 2006 was $202 million (including $121 million for stock-based compensation expense recorded under the fair value method), a 25% decrease compared to $270 million for the same period of 2005.
Net income for was $159 million, compared to $254 million for the same period of 2005.
Semel, chairman and CEO of Yahoo!, said: “While we are tremendously excited about many things happening at Yahoo!, we are not satisfied with our third quarter financial performance. We continued to grow and believe that we outperformed the graphical market but not at a rate that met our expectations.
“Looking forward, we are excited about the roll-out of our new Project Panama advertising platform. In addition, we plan to invest, innovate and secure leading positions in the areas where we see the biggest growth opportunities.”
He added: “We know we have work to do, but we are confident that Yahoo! has the talent and resources to strengthen our leading position on the Internet, capitalise on the huge growth opportunities ahead, and deliver significant returns for shareholders.”
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