[CNet] Yahoo profit doubles; shares tumble

"The Web giant posted a profit of $112.5 million, or 8 cents per diluted share, for its fiscal second quarter, which ended June 30. That's up from $50.8 million, or 4 cents a share, in the same period last year, taking into account a 2-to-1 stock split, effective May 11. Revenue for the quarter was $609 million, excluding traffic acquisition costs (TAC), compared with $321 million a year ago.

[...]

Revenue from Yahoo's paid services businesses jumped to $104 million from $88 million last quarter and $70 million last year. Bulk paid subscriptions reached 6.4 million from 5.8 million last quarter and 3.5 million a year ago. Executives attributed the revenue difference to a price increase for SBC Communications' dial-up customers who also use Yahoo's services."

More of the same at Yahoo: solid search ad growth (though "investors" had grown way inflated assumptions at this point) and comparatively tepid paid service growth. It's funny to see people expecting the most of what was an external company (Overture) not so long ago.