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Yahoo profit jumps on higher revenues

Profit fueled by its acquisition of Web search advertising provider Overture Services Inc. in October.
/ Source: Reuters

Internet services company Yahoo Inc. on Wednesday posted a quarterly net profit that rose from a year ago, fueled by its acquisition of Web search advertising provider Overture Services Inc. in October.

Sunnyvale, California-based Yahoo had a net profit of $75 million, or 11 cents a diluted share, compared with net profit of $46.2 million, or 8 cents in the year-ago fourth quarter.

Revenue, excluding traffic acquisition costs (TAC) or Yahoo's revenue share with partners such as Microsoft Corp.'s MSN Internet unit, was $511.3 million, compared with $285.8 million a year ago.

Revenue, including TAC, was $663.9 million, compared with $285.8 million.

Analysts, on average, had seen the company posting earnings of 11 cents a share on revenue, excluding TAC, of $495.49 million, according to Reuters Research, a unit of Reuters Group Plc.

Yahoo shares closed at $48.39 on the Nasdaq, up 146 percent from a year ago, as investors expect high growth expectations at the company and the sector itself.