In what is seen by many as a good turnaround for the company, Yahoo has posted impressive profits in its third quarter results with earnings standing at $186m.
Yahoo has managed to treble its profits as compared to the same period in 2008 and the internet giant has managed to pull this through even when its total revenues have dipped to $1.58bn.
Analysts believe a major reason for the higher profits at Yahoo were the layoffs it made in the organisation which has prove to be instrumental in improving its operating profits.
In addition, it has been trying hard to woo online advertisers to its network and has launched a major global advertising campaign which is supposed to cost the company around $100m.
Apart from its promoting its portals, Yahoo has also opened up its sites to third party services like Hotmail and Facebook which is going down well with many of its users.
While increasing its revenue figures remains a major challenge for Yahoo and its CEO, Carol Bartz expressed confidence in the company by mentioning “With new products like Yahoo homepage, our brand revitalisation campaign and expansion in the Middle East through Maktoob.com, our execution is improving and we are focused on what we do best -being the centre of people's online lives.”
Shares of Yahoo went up significantly in pre-market transactions, gaining 4.54 percent to push the company's share to around $18. That's still half the price of what it was worth by the end of 2005. Much of the savings though was down to the steep reduction in the number of Yahoo employees, not necessarily down to new business.