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Wednesday, 17 July 2013 10:36

Yahoo sees advertising prices fall

Written by Nick Farrell

Trims revenue

Yahoo has pruned its 2013 revenue after revealing a sharp 12 percent slide in ad prices in the second quarter.

The company is now predicting revenue of $4.45 billion to $4.55 billion this year, down from $4.5 billion to $4.6 billion previously. Yahoo also reported that second-quarter net revenue was down slightly at $1.071 billion, though it posted adjusted profit that was ahead of Wall Street targets.

CFO Ken Goldman acknowledged the pressure on prices but stressed that Yahoo was developing new ad formats and technology that would reverse the trend. The company reported a 12 percent slide in price-per-ad in the second quarter from a year earlier, outstripping the first quarter's two percent decline.

Nick Farrell

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