Yahoo triples profit in first quarter

Yahoo delivered first quarter results that surpassed analysts' modest expectations. However the performance might not be enough to fend off Microsoft's takeover bid, an Associated Press report said.

The report quoted the company saying it earned US$542.2 million (€338.9 million), more than triple its profit of US$142.4 million (€89 million) at the same time last year.

Most of the first quarter improvement stemmed from a non-cash gain of US$401 million (€250 million) recorded to recognise Yahoo's stake in the parent company of, a leading e-commerce site in China that went public last year, the report said.

The Associated Press report said if not for the Alibaba windfall, Yahoo would have earned US$0.11 (€0.069) per share, comparable to its profit at the same time last year, on an apples-to-apples basis.

Revenue climbed 9% to US$1.82 billion (€1.13 billion), the report said.

After subtracting commission that Yahoo paid its advertising partners, its revenue totaled US$1.35 billion (€0.84 billion), just US$30 million (€18.76 millon) ahead of analysts' average projection.

The performance provided another reminder of the ever-widening gap separating Yahoo from Internet search and advertising leader Google, whose first quarter profit climbed 30% to US$1.3 billion (€0.81 billion) on revenue that rose 42% to US$5.2 billion (€3.25 billion).

Perhaps even more importantly, Yahoo didn't raise its revenue outlook for the remainder of year.