By Daniel Hunter
The internet giant, Yahoo, has seen its profits drop as a result of falling advertising sales.
Yahoo’s profits fell by 18% to $270m (£157m) in the three months to the end of June. Revenue also decreased by 3% to $1.08bn.
The falling profits were largely due to a large fall in its advertising sales. Overall ad sales dropped by 8% in the second quarter and Yahoo’s price-per-ad was down by 24%.
“Our top priority is revenue growth and by that measure, we are not satisfied with our results,” said chief executive Marissa Mayer in a statement.
Yahoo also announced that it will not sell as much of its stake in Chinese internet firm, Alibaba, when it floats on the stock exchange.
Yahoo currently holds a large stake in Alibaba and was due to give up 208 million shares as part of the initial public offering (IPO).
“We are pleased to announce today that we have entered into an amendment to the share repurchase agreement with Alibaba, reducing the number of shares that Yahoo is required to sell at the IPO from 208 million shares to 140 million shares,” Yahoo said.
The floatation is expected to raise around $15bn.
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