Yahoo’s profits increased in the second quarter of 2013, according to the company’s latest results, however it continues to struggle against Google and Facebook in the area of online advertising.
The internet firm sold fewer ads between April and June than in the same period of 2012, while the space it did sell was worth 12% less than before.
This pushed revenue down 7% to $1.14 billion, or $1.07 billion when ad commissions were removed.
However cost-cutting, which has seen staffing at the firm fall by almost 10% in the past year, helped to bolster its margin.
The company was also buoyed by the performance in Asia, with its 24% stake in China’s Alibaba and its Japanese division earning more in Q2 than its US arm.
Despite doubts around its ability to compete in the online advertising space, investors were placated by a renewed commitment from the company to continue its share buy back scheme.
In a video presentation streamed on the company’s website, CEO Marissa Mayer remained bullish about the progress being made turning Yahoo's fortunes around.
She said a number of acquisitions, including the recent $1.1 billion deal for microblogging site Tumblr, was leading to a rapid increase in mobile innovation.
Meanwhile, Ms Mayer said that the company’s employee attrition rate is down 59%, while traffic to Yahoo.com was up for the first time in over a year.
