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Yahoo! 4Q profits soar
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January 12, 1999: 4:35 p.m. ET
Web portal leader's revenue nearly triples; company sets 2-for-1 stock split
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NEW YORK (CNNfn) - Web portal leader Yahoo! Inc. Tuesday reported fourth-quarter earnings well ahead of Wall Street estimates as revenues nearly tripled from year-ago levels. The company, whose shares have soared in recent weeks, also set a 2-for-1 stock split.
Yahoo! (YHOO) logged proforma earnings of $25 million, or 21 cents a share, on $76.4 million in revenue. Analysts expected the company to post earnings of 16 cents a share.
Those profits far exceeded the company's year-ago levels, when Yahoo! reported earnings of $1.9 million, or 2 cents a share, on $26.6 million in revenue.
Yahoo!'s earnings exclude a one-time, $2.1-million charge related to the acquisition of Yoyodyne Entertainment Inc., as well as other charges and amortizations. Including those charges, Yahoo! posted net income of $18.5 million, or 16 cents a share.
"1998 was another landmark year for Yahoo!," said Tim Koogle, chairman and chief executive. "We consistently and carefully managed the business, executed our original plan and invested in growing the company while increasing profits each quarter."
Yahoo!'s traffic continues to surge. The company said page views on its global network jumped 16 percent to 167 million per day, compared with 144 million in the third quarter.
Though analysts consider Yahoo! the clear leader among Web portals - the first site users see when they log onto the Internet - the company face will face tough competition in light of recent industry consolidation, particularly America Online Inc. 's (AOL) proposed $4.2-billion acquisition of Netscape Communications Corp. (NSCP).
Also, GO Network, a joint portal venture between Infoseek Corp. (SEEK) and Walt Disney Co. (DIS), officially launched Tuesday.
For the fiscal year 1998, Yahoo! reported earnings of $49.9 million, or 45 cents a share, on $203.3 million in revenue, compared with a 1997 net loss of $425,000, or zero cents a share, on $70.5 million in revenues.
Separately, Yahoo! set a 2-for-1 stock split for shareholders of record by Jan. 22. The split will be reflected in Yahoo!'s trading price on Feb. 8.
In Monday trade, Yahoo!'s shares soared above the $400-a-share mark.
Also, the company expanded the roles of two key executives. President and Chief Executive Tim Koogle will become chairman and CEO, while Jeff Mallett has been named president in addition to his duties as chief operating officer. Both changes are effective immediately.
Yahoo! shares tumbled 18-13/16 to close at 395-11/16 in Tuesday trade. 
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