SAN FRANCISCO: Yahoo said Tuesday its quarterly profit slipped from the same period a year ago, when its coffers were swelled by the sale of shares in China's Alibaba.
Yahoo reported earnings of $297 million on revenue of $1.139 billion in the quarter that ended September 30.
The profit was 91 percent less than was taken in during the same period last year, when Yahoo sold part of its stake in the Chinese e-commerce giant.
"I'm very pleased with our execution, especially as we've continued to invest in and strengthen our core business," said Yahoo chief Marissa Mayer.
"Now with more than 800 million monthly users on Yahoo up 20 percent over the past 15 months we're achieving meaningful increases in user engagement and traffic."
The earnings figures, which topped Wall Street expectations but showed that Mayer has yet to rev up the company's revenues.
We're released along with word that the California company would keep a larger portion of Alibaba under an amended agreement with the Chinese Internet retail titan.
Yahoo said in a statement it would sell 208 million Alibaba shares, instead of a previously agreed 261.5 million shares as the Chinese firm prepares a public offering.
The original repurchase agreement of May 2012 provided that in the event Alibaba completed a qualified IPO.
Yahoo would sell up to 261.5 million of its 523.6 million ordinary shares of Alibaba, either directly to Alibaba Group or in the qualified IPO.
After an IPO, Yahoo, one of the early investors in Alibaba, has the right to sell its remaining shares.
"Yahoo has always believed in the long-term potential and value of Alibaba, and we are pleased to maintain a larger stake in the company's future," said Jacqueline Reses, chief development officer of Yahoo and Alibaba board member.
Expectations are building for an initial public offer (IPO) as early as this year for the Chinese firm, the world's biggest online retailer.
An IPO could value Alibaba at between $60 billion and $100 billion, according to analysts.
Yahoo shares lost nearly two percent during the trading day to close at $33.38 but regained a bit of the ground in after-market trades. (AFP)