Yahoo reviews Japanese business after poor quarter

Yahoo chief executive Marissa Mayer has outlined plans to explore options for the company’s stake in its Japanese division as another report showed disappointing sales and profit.

The company has hired advisers to consider opportunities to maximise value for its stake of about 35% in Yahoo Japan, valued at more than $8 billion (€7.46bn), Mayer said on Tuesday. Earlier, the company said first-quarter sales fell 4% to $1.04bn, and gave a lacklustre forecast for the current period.

Since taking the helm in 2012, Mayer has struggled to add users and woo advertisers by focusing on mobile, adding online channels and signing partners.

The stock has risen in her tenure largely because of the value of the company’s Asian assets, including a stake in Alibaba Group Holding that the company plans to spin off later this year. Now, Mayer could seek to placate investors further with payouts from Yahoo Japan.

Yahoo’s first-quarter sales missed analysts’ average prediction of $1.06bn, according to data compiled by Bloomberg. Profit before some costs was 15c a share, the company said, compared with projections for 18c.

While first-quarter sales declined, the company said revenue from its emerging businesses expanded during the quarter. Mavens sales rose 58% to $363m from $230m a year earlier. Mobile revenue climbed 61% to $234m.

While shares have almost tripled under Mayer’s leadership, much of that added value is tied to Yahoo’s stake in Alibaba, the largest Chinese e-commerce company. In January, Mayer unveiled plans to spin off the shares in a tax-efficient manner, a process that is slated for the fourth quarter.

Bloomberg