San Francisco: Yahoo Inc reported a modest increase in revenue during the third quarter, exceeding lackluster Wall Street targets, as the Internet company`s online display advertising business continued to struggle.
Shares of Yahoo rose 3 percent to $41.40 in extended trading on Tuesday.
For the first time Yahoo disclosed its mobile revenue, which it said was more than $200 million in the third quarter. Yahoo said it expects that gross mobile revenues for the full year will exceed $1.2 billion.
Yahoo`s revenue, excluding fees shared with partner websites, was $1.094 billion in the three months ended Sept. 30, a 1 percent increase from $1.081 billion in the year ago period.
Analysts polled by Thomson Reuters I/B/E/S were looking for adjusted revenue of $1.045 billion.
Yahoo`s revenue growth has stalled in recent years as its once-hot Web portal and email service have lagged rivals such as Google Inc and Facebook Inc.
Yahoo said that it`s display advertising revenue, which accounts for roughly 40 percent of Yahoo`s total revenue, declined 5 percent in the third quarter. Revenue from Yahoo`s search business rose 4 percent year-on-year to $452 million.
