Yahoo Profit Drops 18% But Spending Increases
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Yahoo has posted an 18 percent drop in second-quarter profit after a spending spree on developing new projects.

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Net income fell to $US131 million from $US161 million for the same time last year but sales rose 8.2 per cent to $US1.35 billion, according to Bloomberg, with Yahoo changing its full-year revenue forecast from $US7.2 billion to $US8 billion.

Yahoo’s earnings drop are thought to also reflect the creeping impact that the souring economy has had on the online ad market as well as the on again, off again buyout battle the search company is having with Microsoft.