Yahoo (NASDAQ: YHOO) Inc, which agreed to sell its key divisions to Verizon Communications Inc (NYSE: VZ), reported on higher than expected adjusted quarterly profit on Tuesday, which improved the company’s position, faced with a large-scale leakage of data.
The net profit, attributable to Yahoo, in the third quarter ended September 30 rose to $ 162.8 million, or 17 cents per share, from $ 76.3 million, or 8 cents per share, a year earlier.
Excluding the number of balance sheet items, the company earned 20 cents per share, while analysts expected 14 cents.
The revenue of Mavens, which combines the mobile, native, social and video divisions, which CEO Marissa Mayer called developing sectors, increased by 24.2% to $ 524 million.
Total revenue increased by 6.5% to $ 1.31 billion, slightly above the consensus forecast of analysts polled by Reuters ($ 1.30 billion). At the same time, the revenue after deducting payments to partner sites fell to $857.7 million from $1 billion.
Verizon plans to integrate the search engine, e-mail and instant messengers, as well as advertising technology of Yahoo with AOL unit, which the company acquired last year for $ 4.4 billion.
The deal, which should be completed in early 2017, marks the end of the existence of Yahoo as an operating company, leaving its owners 15% stake in the Chinese e-commerce giant Alibaba Group Holding Ltd and a 35.5% stake in Yahoo Japan Corp.
As for the US stock market, it shows little changes on Wednesday, as the growth of the energy and financial sectors was offset by a drop in securities of technology companies, led by Intel (NASDAQ: INTC).
Dow Jones index rose 0.25% to 18207.62 points, S & P 500 index rose 0.15% to 2142.83 points, abd Nasdaq Composite dropped by 0.03% to 5241.11 points.
Five of the 11 major industries of S & P went negative. The worst performers were the shares of the consumer sector, which lost 0.66%. The pressure on this sector went from the shares of tobacco company Reynolds American, which declined by 2.8% due to its poor report.