Surge in online ads boosts Yahoo

ROBUST demand for online ads helped California-based internet company Yahoo more than double first-quarter profits and it has issued a bullish forecast for the months ahead.

Yahoo, which runs America's most-visited website, said net profit in the three months to March climbed to $205m (£106.8m) from $101m in the year-ago period. Revenues rose 55% to $1.17bn.

The result, which eclipsed analysts' consensus estimates, will reinforce investors' faith in online stocks as companies spend a larger share of their advertising budgets on cyberspace promotions.

'Yahoo entered 2005 on a high note, delivering strong growth and record revenue for the eighth consecutive quarter,' said chairman and chief executive Terry Semel. 'We are on the cusp of witnessing a significant increase in engagement of consumers on the internet,' he added.

Yahoo executives noted particularly strong growth in international sales and income as it pushed to expand beyond its home market. International revenues jumped 124% to $365m, bringing in operating income of $75m, up from $20m a year ago.