Internet search service Yahoo! lost $1.4 million on $3.3m revenues for its April-June fiscal quarter despite growing revenues and ad sales. A year ago, the firm lost $355,000 on zero revenues. Yahoo! blamed infrastructure growth, with sales, marketing and development costs up sharply. Yahoo! claimed 230 advertisers in the quarter, up from 112 for the first quarter.
The quarter was Yahoo!'s first as a public company and management said it was unfazed by the loss. "We are committed to maintaining our leadership position and will continue to invest heavily in building the Yahoo! service and extending the Yahoo! brand on a global scale," said Tim Koogle, president and CEO. European localised services for the UK, France and Germany are planned for before the year-end.