Yahoo's fourth-quarter profit surpassed expectations

On Tuesday (January 23), the last quarter's 2006 profit figures were announced by Yahoo to exceed the experts' expectations. This breakthrough not only helped the Internet giant to erase the recent gloomy financial situation, but also a motivation for Yahoo to speed up the introduction of upgrades in the field of advertising, technology plays a key role. in the development of this group.

After announcing the success of Yahoo's fourth-quarter success, its stock has increased by 5%. More specifically, the Sunnyvale-based company said it had earned $ 268.7 million, or 19 cents a share, in the last three months of 2006, which is always considered a boom season. The most in the year of websites where revenue is primarily based on advertising like Yahoo.

Also in the third meeting this week, Yahoo chairman Terry Semel said his company will first deploy a new mode of business in the US that will find which ads are most clicked to share revenue commissions.

Currently, Yahoo is planning to launch a new advertising service platform code-named Project Panama on February 5, which is nearly two months before the expected announcement by management in October last year.

At first, Yahoo planned to launch Panama later this year, but it decided to suspend it to allow more time for engineers to complete the mistakes.

Source: AP . Mr. Semel said: ' We think that the important thing is quality, not progress. We have had enough time and the test results are very impressive . '

Although it launched Panama earlier than expected, Yahoo's management still expects its first-quarter revenue to be lower than experts' estimates. Some analysts say that this conservative view of Yahoo has given them a 'backline' in the case of Panama's newly upgraded products that do not generate immediate revenue.

Peter Hershberg, managing director of Reprise Media, the online advertising campaign management unit, said: ' Yahoo cannot leave Panama inefficient after spending too much time offering its benefits. This new ad. This will be a factor or build or will ruin Yahoo '.

On Yahoo's board of directors, President Semel is still very confident with the upcoming Panama service. He predicts, the service will help Yahoo become one or two of the top advertising channels in the world.

Yahoo ended in 2006 with compelling numbers, fourth-quarter revenue reached $ 1.7 billion, up $ 1.5 billion from the previous year. If subtracting advertising commissions for partners, Yahoo's fourth-quarter total revenue reached $ 1.23 billion, up 15% from 2005 and 10% compared to the third quarter of 2006.

Investors bet that Panama will be a factor to narrow Yahoo's financial gap compared to rival Google this year, contributing to an 8% increase in its stock price in the first three weeks of 2007.

Not only far from Google in the search for huge profits, Yahoo did not catch up with this giant of virtual society, even though the number of Yahoo users' registration in December increased by 423. million turns.

Those problems forced Yahoo into a situation where it was forced to reform the company's leadership team last month. Accordingly, Chief Financial Officer Susan Decker was appointed as executive director of advertising after the previous position manager, Dan Rosensweig, will "leave" in March.

In the opinion of Bill Wise, general manager of Internet advertising firm Did-It Search Marketing, it is very likely that the new Panama service and the changes in personnel structure mentioned above will create a new vitality for Yahoo.

Do Duong