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Yahoo Q2 profit down as display ad growth slows

Slowing growth in display advertising led to a nearly 2 percent drop in net profit for Yahoo in the second quarter.

Slowing growth in display advertising led to a nearly 2 percent drop in net profit for Yahoo in the second quarter.

Net earnings were $161 million, or 11 cents a share, down from $164 million, or 11 cents a share, a year ago. It was the sixth consecutive quarterly profit drop for the company.

The Internet search and media company reported revenue rose 11 percent to $1.24 billion from $1.12 billion a year ago, excluding traffic acquisition costs, which are commissions paid to content partners.

The results matched what analysts polled by Thomson Financial were expecting. Yahoo had warned last month that its revenue would come in at the lower half of its previous guidance $1.2 billion to $1.3 billion.

with co-founder Jerry Yang a month ago and named Sue Decker, former chief financial officer and head of its advertising business, as president. Semel remains on as nonexecutive chairman of the board.

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