The firm reported a internet loss attributable to it of $21.6 million, or 2 cents per share, within the second quarter ended June 30, in contrast with a revenue of $269.7 million, or 26 cents per share, a yr earlier.
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Excluding items, the company earned 16 cents per share, missing analysts’ average estimate of 18 cents per share.
The planned spin-off of shares of global company Yahoo in Alibaba Group Holding Ltd., China’s Internet titan, may entail an unexpected tax bill, Yahoo cautioned investors on Friday, July 17.
Yahoo! Inc. declined in extended trading after forecasting sales in the current quarter below analysts’ estimates, a sign Chief Executive Officer Marissa Mayer’s turnaround effort is still a work in progress.
Yahoo made no comment about its awaited ruling by the US Internal Revenue Service on whether the transaction will be tax-free but said the spinoff was on track to be completed by the end of the year. That slightly beat the $1.03 billion expected from analysts polled by Thomson Reuters.
“Our Mavens investment businesses across mobile, video, native and social grew to almost US$400 million in revenue this quarter, delivering 60 percent… growth year-over-year”, she said in a statement. The company earlier this year renegotiated its partnership with Microsoft Corp., a deal that gave Yahoo more control over the search results and ads it shows on desktops and mobile phones.
Yahoo’s Alibaba stake is now worth almost $32 billion, representing most of Yahoo’s market value.
According to the report, Yahoo’s stock gains in the past three years werelargely due to investor’s growing enthusiasm for Alibaba, and Mayer has committed to bring the billions of dollars to shareholders by completing the spin-off process.
In after-hours trading late Tuesday, Yahoo’s stock was at $39.50, down from its $39.73 close.
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Mayer said Tuesday she remains confident Yahoo’s net revenue will begin climbing again as the company reaps the benefits from its recent emphasis on mobile applications, advertising and search.
