Yahoo CEO Marissa Mayer (pictured) said the company is “committed to finishing strong and planning the best possible integration with Verizon”, following a robust performance in Q1.
She said Verizon’s deal to acquire Yahoo’s core businesses is expected to complete in June, and she had: “never been more proud of the improvements we’ve made to the business and the value we’ve delivered to our shareholders”.
Yahoo reported a net profit for the quarter to 31 March of $99.4 million, compared with a net loss of $99.2 million in the same period of 2016. Revenue in the recent quarter of $1.3 billion was up from $1.1 billion in Q1 2016. The company’s top line was flattered by a change in revenue presentation related to a deal with Microsoft: without it, revenue in the recent quarter would have stood at $1 billion.
The increase in top-line following the accounting change was accompanied by a corresponding increase in traffic acquisition costs. Revenue excluding TAC decreased to $833.8 million in the recent period from $859.4 million.
First quarter mobile revenue increased to $412 million from $260 million, again benefiting from the accounting change. Excluding this, mobile revenue would have been $274 million, representing 28 per cent of total revenue during the period.
The path to US telecoms giant Verizon’s acquisition of core Yahoo businesses was not without challenges. The operator already cut the purchase price by $350 million following security breaches at the internet company, taking the price to $4.5 billion.
The remainder of Yahoo, including stakes in Alibaba and Yahoo Japan, will be renamed Altaba.