Operating profit shrank by as much as 39 percent to 93 million dollars due to high development costs for new products, yahoo announced on tuesday in sunnyvale, california.
Mayer had stepped up to rub yahoo out of its lethargy after trench warfare in management. She was also partially successful. As she emphasizes again and again, the company receives many applications and the number of users for the various offers is increasing. Yahoo had, among other things, overhauled its photo platform flickr, invested heavily in apps for smartphones and tablet computers, and bought several companies such as the blog platform tumblr.
Yahoo continues to face tough competition from rivals like google and facebook in the hunt for advertising dollars. Yahoo banner ad sales dropped seven percent to $470 million. This was due, among other things, to a drop in prices. Even the paid links in search results yielded less.