By Marcus Leach

Poor advertising sales contributed to Yahoo reporting a dip in revenue for the second quarter of 2011.

Revenue was down 4.6% on the same period last year as figures show Yahoo generated $1.08 billion (£670 million) in revenue.

Despite the drop in revenue Yahoo reported an 11%, $237 million, rise in profits.

The second quarter was a "mix of good, encouraging and, at the same time, unsatisfactory" developments," said Carol Bartz, the chief executive of Yahoo.

"The issue was we did not have enough sales people in front of the big clients," she said.

Yahoo has had to deal with increased competition from its rivals, Facebook and Google, which has contributed to its figures.

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