New York: Internet giant Yahoo Inc has reported a staggering net income of USD 3.16 billion in the three months ended September 30, 2012 largely due to sale of part of its stake in Chinese e-commerce portal Alibaba Group Holding Ltd.
In the year-ago period, the company had a net income of USD 293.29 million, Yahoo said in a statement.
However, the company's revenue fell by one percent to USD 1.20 billion in the July-September quarter of 2012.
Marissa Mayer, who joined Yahoo in July as CEO after serving a top Google executive, said, "Yahoo had a solid third quarter, and we are encouraged by the stabilisation in search and display revenue".
"We're taking important steps to position Yahoo for long-term success, and we are confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders," she added.
The company's quarterly profit surged as Yahoo has closed initial stage of its share repurchase agreement with Alibaba, receiving pre-tax proceeds of a total USD 7.6 billion, including USD 6.3 billion in cash and the remaining USD 800 million in preferred shares.
Yahoo said it plans to give 85 percent or USD 3.65 billion of that amount, after taxes, back to shareholders.
Revenue from display advertising segment that includes graphical and video ads among others, was flat from a year ago period at USD 452 million, while search advertising revenue stood at USD 414 million, up 11 percent from the year-ago period.
Yahoo, which had 40 percent stake in Alibaba. It has sold hald of its stake in the portal.
The Alibaba sale left Yahoo with USD 9.4 billion in cash at the end of September quarter. Out of the total cash, the company has earmarked USD 2.5 billion to pay in taxes in the fourth quarter.
First Published: Tuesday, October 23, 2012, 13:42