Yahoo Inc's net revenue and profit slipped in the third quarter, as the internet company struggled to revive its online advertising business.

Yahoo shares were up roughly 3 per cent at $15.98 in after hours trading tonight.

Profit in Yahoo's third-quarter, the last quarter under chief executive Carol Bartz, who was fired in September, totaled $293 million. In the same period a year ago, Yahoo posted net income of $396 million.

Yahoo's net revenue - which excludes fees paid to partner websites - was $1.07 billion, compared with $1.12 billion at this time last year, and in line with Wall Street expectations.

Looking ahead, Yahoo projected fourth-quarter net revenue of $1.125 billion to $1.235 billion, compared with $1.22 billion expected by analysts.

Yahoo, which has appointed finance chief Tim Morse as interim ceo, has retained investment banking firm Allen & Co to help it conduct a "strategic review" of its business.

Reuters