Yahoo Q2 Loss Widens Sharply

(RTTNews) - Yahoo! Inc. (YHOO) Monday reported a loss for the second quarter that widened from a year ago. Yahoo's adjusted earnings fell short of Wall Street estimates by a penny.

Sunnyvale, California-based Yahoo reported a second-quarter loss of $440 million or $0.46 per share, wider than last year's loss of $22 million or $0.02 per share last year.

On an adjusted basis, earnings dropped to $0.09 per share from $0.16 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.10 per share.

Yahoo's revenue's for the quarter rose to $1.31 billion from $1.24 billion last year, reflecting a change in revenue presentation. Without that change, revenue would have declined 15 percent to $1.06 billion. Analysts had a consensus revenue estimate of $1.08 billion.

Traffic-acquisition costs rose to $466 million from $200 million last year.

Meanwhile, Yahoo is reportedly set to select bids from private equity suitors TPG, Advent International Corp. and a partnership of Sycamore Partners and Vector Capital Management in a final round of bidding for its core internet business

The three buyout groups join Verizon Communications Inc., AT&T Inc. and Quicken Loans Inc. founder Dan Gilbert in the last weeks of the bidding process.

Yahoo under Marissa Mayer has been struggling for last four years to win the back the market share it lost to Internet giants like Facebook and Google. In February, the struggling internet behemoth started seeking bids for its core web businesses, which include its search and media content operations.

YHOO closed Monday's trading at $37.95, up $0.23 or 0.61 % on the Nasdaq.