Yahoo Sees Dip in Revenue From Display, Search Advertising

The news was less than buoyantly optimistic for Yahoo on Tuesday, when the company was forced to concede that changing course on Yahoo’s recent history of declining revenue won’t be as fast or easy as some had hoped.

Yahoo reported yesterday that revenue from display and search advertising – two primary sources of cash for the company – fell in the second quarter.

Since arriving from Google last summer, Ms. Mayer has reversed a decline in Internet traffic, and she has tried to improve employee morale by offering new smartphones and free food in the cafeteria.

“We have made real progress over the last year,” said Yahoo CEO Marissa Mayer. “The people are here. The engine is now up and running.”

Notwithstanding the sluggish ad sales, Yahoo reported that net income in the quarter managed to climb 46 percent year over year to $331 million.

Unfortunately, revenue over the same period dipped 7 percent.

“The reality is, they’re [Yahoo] in the early stage of a difficult process,” Colin Gillis, an analyst with BGC Partners, told the New York Times. “We are still a ways away from seeing what this management team can do.”