Yahoo chief upbeat despite lacklustre results

Yahoo chief executive Marissa Mayer has put a positive spin on the lacklustre Q1 results, which saw revenues down 7% from a year ago

Yahoo chief executive Marissa Mayer has tried to put a positive spin on the company’s lacklustre first quarter results, which saw revenues of $1.14bn, down 7% from the same period a year ago.

Mayer said she was pleased with Yahoo’s performance and said the company had seen continued stability in the first three months of the year.

"We are moving quickly to roll out beautifully designed, more intuitive experiences for our users. I'm confident that the improvements we're making to our products will set up the company for long-term growth," she said.

Income from operations increased 10% to $186m compared with the first quarter of 2012, net earnings were $390m, up 36%, and net earnings per diluted share was $0.35, compared with $0.23 in 2012.

However, display revenue was $455m, an 11% decrease compared with $511m for the first quarter of 2012, and search revenue was down 10% to $425m.

Yahoo said it will post net revenue of up to $1.09bn in the current quarter, just below analysts’ expectations of $1.1bn.

Among highlights of the quarter was the acquistion of UK-based mobile startup Summly led by 17-year-old founder Nick D’Aloisio that summarises long texts to make them easier to read on mobile screens.

Yahoo also bought, Alike and Jybe,  which Mayer said in her results presentation were all aimed at “accelerating the company’s efforts to build world-class technology and engineering teams in mobile and personalisation,” according to US reports.

Mayer, who has been entrusted with turning the company around in the face of competition from Google, has been trying to make Yahoo's online services more compelling to boost ad sales.

As part of a makeover under Mayer’s leadership, Yahoo has redesigned its home page, email service and Flickr photo-sharing service.

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