Yahoo's ad revenues slumped in the first quarter

04/16/2013 | Wall Street Journal, The

Yahoo posted a 36% increase in profits for the first quarter -- but the leap was largely due to the performance of its stake in Chinese e-commerce giant Alibaba. Yahoo's core display-ad business, which accounts for 40% of the firm's sales, slumped 11% from a year earlier, hitting $455 million. Search ads fell 10% from a year earlier, dwindling to $425 million.

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