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Yahoo revenue up 22% in 2006

Published on .

Sunnyvale, Calif.—Yahoo reported Tuesday that its revenue surged 22% last year to $6.4 million, from $5.2 million in 2005. However, earnings fell 15% to $941.0 million, down from $1.10 billion.

Fourth-quarter revenue was $1.70 billion, up from $1.50 billion in the year-earlier period, beating analysts’ expectations. Net income fell to $269 million (19 cents a share) from $683 million (46 cents a share) in the fourth quarter of 2005.

Yahoo, which has been losing market share for Internet searches to rival Google, said its new search advertising system would be available starting Feb. 5, and that it would deliver more profit to the company.

—Matthew Schwartz

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