Yahoo posts lower profit

Internet search engine giant Yahoo reported a dip in quarterly profit last night as corporate advertisers spent less on its online…

Internet search engine giant Yahoo reported a dip in quarterly profit last night as corporate advertisers spent less on its online ads, and the company gave a weaker-than-expected forecast for the rest of 2007.

Shares in the Internet media company, which plans to employ 400 at its Dublin operation by 2010, fell 4.2 per cent in extended trade.

Jerry Yang, the company's co-founder who took the CEO job in a June management shake-up, promised a new strategic plan as he sought to convince investors he is open to change and able to take on rapidly growing rival Google.

"I intend to spend the next 100 days or so focused on mapping out a strategic plan," Yang told Wall Street analysts on a quarterly conference call. "There are no sacred cows."

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He said Yahoo has three priorities: help advertisers gain insight into Yahoo customer interests, create a more open technology platform for Internet users and arrange more partnerships such as those struck in the past year with eBay, Comcast Corporation and newspapers.

Wall Street remains impatient following the management changes and wants to see significant job cuts, a renewed focus on its Internet media business, the outsourcing of Web search to either Microsoft or Google, and a potential combination between Yahoo and another major Internet player.