Yahoo Beats Analyst Expectations, Music Changes Ahead

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Yahoo surpassed analyst expectations during its most recent quarterly review, despite a mild slide in profitability.

The report seemed to validate changes being implemented by cofounder and chief executive Jerry Yang, and investors bumped shares as a result.

From a top level, revenues reached $1.8 billion, a 12 percent bump over figures of $1.6 billion from the comparable third quarter last year.  Net income landed at $151 million, down 5 percent from $159 million last year.

Yang pointed to growth over the past three months, and a continued re-sharpening.  The chief is aiming to become a starting point for most surfers, a “must buy” for advertisers, and an open platform that will “attract the most developers.”

The discussion also offered more clues into the music strategy.  Yang reaffirmed a shift away from the premium, Yahoo Music Unlimited service, but clearly earmarked a spot for music within search and other advertising-driven areas.  “We have deemphasized our focus around subscription music in favor of advertising-supported music,” Yang said.  “Our broader ambition is to focus our efforts around building platforms that attract third parties and user-generated content, while deemphasizing original entertainment programming and our premium music business.”