Yahoo (NSDQ: YHOO) posted a 19 percent jump in display ad sales for the quarter, but that once again wasn’t enough to offset declining search ad sales, as the company reported its seventh consecutive quarter of declining net revenue. Yahoo did however post a big jump in net income, as it benefited from streamlining its businesses.
For the quarter, net revenue dropped one percent to $1.128 billion from $1.14 billion a year ago. EPS came in at 15 cents per share, up from 10 cents per share during the second quarter of 2008. Analysts on average had expected net revenue of $1.16 billion and EPS of 14 cents per share.
The jump in display ad sales was in line with what analysts had forecast, but the eight percent drop in search ad sales, while notably smaller than the 14 percent drop last quarter, was greater than expected. In the company’s earnings announcement, however, CEO Carol Bartz said that Yahoo’s “search fundamentals are improving.”
Next quarter, however, Yahoo still isn’t counting on much overall sales growth. The company says it expects revenue to be between $1.57 billion and $1.65 billion, which means that, at worst, sales will fall off slightly, or at best, increase five percent.