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Second-quarter revenue more than doubled to $832.3 million from $321.4 million in the same period a year ago. Profit rose to a record $112.5 million, or 8 cents a share. That's up from $50.8 million, or 4 cents a share, from a year ago.
After factoring in ``traffic acquisition costs'' -- the fees that Yahoo pays to other Web sites that carry its advertising -- Yahoo's revenue was $609.1 million, a 90 percent jump from the same period a year ago.
From Reuters: Shares of Internet media company Yahoo Inc. (YHOO) also tumbled before the open, a day after the company reported second-quarter results that disappointed investors.
So, even though they broke records, they still didn't do as well as they had predicted.
Just stating another perspective...
So that makes up 25% of all yahoo revenues and profits. There is some growth in there, but not nearly as much as a first glance indicates. Organic growth looks more like 50% per annum.
They did however elude that if the Overture ads delivered to MSN were to stop that things might not look so rosey anymore.
Reading between the lines, it seems that the focus of Yahoo financially is in Overture and the paid placement services (I think all of us could have figured out this one, but it's interesting to see it in the mainstream media).