Yahoo posted a 37 per cent drop in quarterly profit last night amid weak online corporate advertising sales and competitive pressures. The company has cut its outlook, sending shares down 3 per cent.
Net income for the third-quarter dropped to $159 million, or 11 cents per share compared to last year's third quarter profit of $254 million, or 17 cents per share.
Total revenue rose 19 per cent to $1.58 billion.
Excluding traffic acquisition costs - the financial cut affiliated Web sites receive for featuring Yahoo advertising, revenue rose 20 per cent to $1.12 billion.
For the fourth quarter, the company said it expected revenue, excluding Web site affiliate payments, of between $1.15 billion and $1.27 billion.
Wall Street analysts, on average, are predicting revenue for the fourth quarter in a range of between $1.2 billion and $1.39 billion.
