Yahoo has reported an increase in revenue, marking its first quarterly sales growth in three years, as new chief executive Scott Thompson outlined his plan to revamp the struggling internet company.
Citing moves to shut down dozens of underperforming online properties, while making online commerce and mobile products a bigger part of Yahoo's business, Mr Thompson described "the first steps" to regain market share from online rivals and revive the company's growth.
"I'm convinced that we don't need to reinvent who we are," Thompson said during a conference call with analysts last night.
"But I'm equally convinced we absolutely do need to reinvent the experiences our users have with the marquee properties that bring them to Yahoo every day."
Mr Thompson also said that Yahoo was once more exploring ways to "monetize" some of its stake in China's Alibaba Group.
Shares of Yahoo increased 2.7 per cent to $15.41 in after hours trading last night.
The comments marked the most extensive details Mr Thompson has provided about his strategy since taking the top job at Yahoo in January.
But the former PayPal president faces a high wall of skepticism from investors who have watched several failed attempts to restructure and revitalise the one-time web pioneer in recent years.
Carol Bartz, Mr Thompson's immediate predecessor, was fired over the phone in September.
"I didn't hear anything particularly aggressive or transformative in what he said," said Macquarie Research analyst Ben Schachter.
"While Scott has a great track record, the company itself has done many of these things," in the past, Mr Schachter said.
Yahoo said its net income grew 28 per cent in the three months ended March 31st to $286 million, or 23 cents a share, outpacing Wall Street expectations of 17 cents a share.
Much of the increase in quarterly profit came from Yahoo's earnings in equity interests, which more than doubled year-on-year and comprise mainly its investments in Alibaba as well as Yahoo Japan.
"Their minority stake in their investments is generating more profit than their core business," said BGC Partners analyst Colin Gillis.
Reuters
