 Yahoo chief Terry Semel was tight-lipped on the investment sale |
Strong growth in online advertising and cashing in on an investment have helped US internet group Yahoo post a six-fold increase in profits. It unveiled profits of $754.7m (�631m) for the three months to June, up from $112.5m for the same period last year.
However, it added the sale of a "significant" investment had buoyed its earnings by a one-off $563m.
Without that, its earnings per share would have come in at 13 cents, in line with forecasts, rather than 51 cents.
The company did not disclose what investment it had cashed in on, but it does own a significant stake in rival Google after sinking $10m into the group in 2000.
Strong sales
"Yahoo continued to see solid growth in the second quarter as a result of our strength in both search marketing and brand advertising," chairman and chief executive Terry Semel said.
Overall revenues at the California-based group surged 51% to $1.25bn.
Meanwhile, revenues excluding the fees paid to other websites for carrying its adverts, rose 43% to $875m.
Shares in the company dipped to $34.44 in out of hours trade following the announcement. Yahoo had closed 3.1% up at $37.73 on the Nasdaq.
Market commentators put the dip down to the fact that investors were disappointed it had failed to exceed analyst expectations.
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