Yahoo reported a drop in second-quarter revenue Tuesday, but profits posted a gain thanks to successful investments.
The struggling internet pioneer, which appointed Google executive Marissa Mayer as chief executive a year ago, said that revenue fell 7 percent compared to the year-earlier quarter to $1.14 billion, while net income climbed 46 percent to $331 million.
"I am encouraged by Yahoo's performance," said Mayer in a statement. "Our business saw continued stability, and we launched more products than ever before, introducing a significant new product almost every week."
She has said that she expects any turnaround to be a multiyear effort, but the company is facing severe problems as advertisers shift marketing budgets to rivals like Google.
While Yahoo's main business of display advertising has dropped in each of the last seven quarters, the company has managed to boost profits thanks to its stake in the fast-growing Chinese e-commerce site Alibaba.
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