Yahoo (NASDAQ: YHOO) Inc, which is preparing to sell its key Internet division to Verizon Communications Inc (NYSE: VZ), reported a 22.1% increase in quarterly revenue, to $ 1.33 billion from $ 1.09 billion.
According to Yahoo, revenue of Mavens, which unites the mobile, social and video advertising divisions, rose 35.65 to $ 529 million in the first quarter, which ended on March 31.
The quarterly net profit attributable to Yahoo was $ 99.4 million, or 10 cents per share, compared to a net loss of $ 99.2 million, or 10 cents per share, a year earlier.
In February, Verizon, the leading provider of wireless communications services in the US, agreed to buy Yahoo's key Internet business for $ 4.48 billion, which is about $ 350 million less than the initial price. The change in the terms of the deal was due to two hacker attacks, which Yahoo reported last year.
Yahoo shares rose in price by 0.4%. Over the past 12 months, the company's capitalization has decreased by 17%.
Yesterday, another tech company, IBM (NYSE: IBM), reported a decrease in revenues, which turned out to be higher than expected for the first time in five quarters due to weak demand in the IT business division of the company. Such results signal that a change in the company's business structure may take longer than expected.
The company's revenue has been declining for 20 consecutive quarters; IBM shares fell 4.7% to $ 162 after the close of the trading session on Tuesday. With this dynamic, the company's share increase by about 2.5% this year is completely eliminated.
Given the stagnant demand for hardware and software, the company has focused on the development of cloud services, security software, data analytics and artificial intelligence. However, this could not compensate for the weakness of the company's core operations, especially in the field of technology services and cloud platforms.
The total revenue of IBM declined by 2.8% in the first quarter after a decline by 1.3% in the fourth quarter; Analysts had expected that this figure would drop by 1.6%.
Revenue for the first quarter was $ 18.16 billion, while analysts projected a result of $ 18.39 billion, according to Thomson Reuters I/B/E/S.
The business of technology services and cloud platforms fell 2.5% to $ 8.2 billion. This division accounted for about 45% of total revenue.
The company said that gross margin fell in all five divisions.
Net profit of IBM fell 13% to $ 1.75 billion.