Yahoo increases mobile revenue, but advertising business remains under threat from rivals

Yahoo has just reported $1.3bn in revenues for its Q2 2016 results. That compares to a $22m loss during the same quarter the year over. However, the company also added a $500m downgrade in valuation for Tumblr.
Yahoo reports latest quarter revenue results
The company’s Mavens (mobile, video, native, and social) business showed an increase in mobile and search-related ad revenues. However, display ad revenue dropped by a 7% annual rate to $470m.
Yahoo Mavens
Screen shot 2016-07-19 at 7.26.04 AM
Mobile revenue was up at $378m for the quarter, compared to $252m for the same period in 2015. Mobile represented 30% of traffic-driven revenue during the second quarter.
Gross mobile revenue came in at $414m.
Yahoo mobile revenue
Screen shot 2016-07-19 at 7.22.08 AM
There’s been much speculation as to which company will acquire Yahoo. AT&T and Verizon Wireless are likely suitors. In its latest statement, the company did not offer further information pertaining to the issue.
However, latest revenue results may make negotiations even tougher for Yahoo.
In the statement, Marissa Mayer, CEO of Yahoo, says:
marissa mayer

“With the lowest cost structure and headcount in a decade, we continue to make solid progress against our 2016 plan.  Through disciplined expense management and focused execution, we delivered Q2 results that met guidance across the board and in some areas exceeded it. In addition to our efforts to improve the operating business, our board has made great progress on strategic alternatives. We are relentlessly focused on delivering shareholder value.”

Whilst Yahoo’s advertising business seems to be on the up, much of it is threatened by rivals Google and Facebook.
As of late, Yahoo has been working hard to transform itself into a lucrative business by cutting staff, selling assets and closing down some of its core business. It remains to be seen if one of the potential bidders will make a suitable approach by next Monday, when the bid deadline has been set.

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