Yahoo’s earnings rise in Mayer’s debut

The New York Times reported Yahoo doing quite well in this quarter:

For the quarter in which Marissa Mayer came aboard as chief executive, Yahoo reported stronger earnings than a year earlier, but slightly lower revenue.

Yahoo reported Monday that net income in the third quarter, which ended Sept. 30, rose sharply to $3.16 billion, or $2.64 a share, from $298.3 million, or 23 cents a share, in the same quarter a year ago. That included a net gain of $2.8 billion related to the sale of Alibaba shares and restructuring charges of $16 million, net of tax.

Income from operations decreased 14 percent, to $152 million from $177 million in the year earlier period.

The company said revenue fell to $1.2 billion from $1.22 billion in the year earlier quarter.

Mayer continued that Yahoo is well positions in areas such as “checking weather, sports scores, financial information, watching videos sharing photos, getting news and playing games.” The only problem is how to extract money out of these services. It’s not going to be easy and if anything Yahoo is in the bad position to continue providing these services for free.

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