Yahoo has posted declines in profit and sales this week, as the struggling internet giant looks to turnaround its fortunes under new Chief Executive Scott Thompson.
Thomson was hired to lead the Internet company through a turnaround effort amid continued cost cutting and stagnant financial performance.
Yahoo said net earnings for the fourth quarter ended in December fell to $295.6 million, or 24 cents a share, from $312 million, or 24 cents a share in the year-earlier period.
Net revenue fell 3% to $1.17 billion, Yahoo said.
Yahoo’s core business of online display advertising saw revenue fall 4% to $546 million when excluding costs for acquiring traffic.
Search advertising revenue fell 3% to $376 million, Yahoo said.
Yahoo cut operating expenses significantly in the quarter, to $687 million from $747.5 million in the same period a year earlier.
Last week, Google–already a dominant power in search advertising–reported that its display-advertising business is now on pace to generate over $5 billion in annual revenue.
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Yahoo faces stiff competition especially in the realm of display advertising. It doesn’t only have to compete with Google but also with Facebook which is currently leading the pack!