Yahoo!’s profits fell 23% to $206 million in the fourth quarter, down from $269 million a year earlier.
Its full year profits were $660 million, down from $751 million in 2006, while its revenues were $7.0 billion, up 8% year on year.
Jerry Yang, co-founder and chief executive officer of Yahoo!, warned of tough times ahead but said the business was seeking to make necessary investments that will help the company gain a “significant piece” of the growing ad market.
“Looking to 2008, we are taking an aggressive investment posture. We’re making profound, fundamental changes to virtually all aspects of our business.
“While we will continue to face headwinds this year, we believe that the moves we are making will help us exit 2008 stronger and more competitive and return to higher levels of operating cash flow growth in 2009.”
Yahoo! also confirmed plans to make 1,000 job cuts, its first cuts in six years and representing 7% of its workforce.
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