Internet company Yahoo Inc. has reported rise in its net profit, however, its second quarter revenue went down due to decreasing sale of advertisements.
According to the BBC (opens in new tab), on Tuesday Yahoo posted 11 percent hike in its net profit during second quarter that is April-June, to reach $237 million from $213 million reported for the same period last year.
The revenues for the firm have reportedly fallen by five percent to reach $1.08 billion for the same fiscal quarter due to a low phase in the sales of advertisements.
"We experienced softness in display revenue in the second half of the quarter due to comprehensive changes we have made in our sales organisation to position ourselves for more rapid display growth in the future," stated Carol Bartz, the chief executive of Yahoo Inc.
According to Bartz, growing rivals is not the only problem the company is facing. Yahoo recently suffered a major setback when Alibaba, a firm in which Yahoo had 43 percent share, sold its major portion to another firm. The deal has jolted Yahoo’s position in China, thus generating lot of negative press and investor’s concerns.
Bartz has assured to turn things around as the company is undertaking the negotiations almost on the daily basis in order to find a solution to the Alibaba issue.