Yahoo last night reported a modest increase in revenue during the third quarter, exceeding lacklustre Wall Street targets, as the Internet company's online display advertising business continued to struggle.
Yahoo's revenue, excluding fees shared with partner websites, was $1.094 billion in the three months to the end of September.
This marked a 1% increase from $1.081 billion the same time last year.
Analysts had been looking for adjusted revenue of $1.045 billion.
For the first time Yahoo disclosed its mobile revenue, which it said was more than $200m in the third quarter. Yahoo said it expects that gross mobile revenues for the full year will exceed $1.2 billion.
Yahoo's revenue growth has stalled in recent years as its web portal and email service have lagged rivals such as Google and Facebook.
Its chief executive Marissa Mayer has revamped many of Yahoo’s products and acquired a string of companies during the past two years, but she has been unable to revive the company’s revenue growth.
Yahoo said that its display advertising revenue, which accounts for roughly 40% of its total revenue, declined 5% in the third quarter.
Meanwhile, revenue from its search business rose 4% year-on-year to $452m.
