yahooYahoo has reported a net profit of $118.7 million, down 78% when compared with Q1 last year. Gross revenes were down as well – at $1,580 million, down 13 percent from Q1 2008. The company has also decided to lay off 5 percent employees across the globe. 

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Revenues

According to Yahoo CEO Carol Bartz, the company experienced pressure in both display and search advertising in the first quarter. Yahoo’s Marketing services revenues declined 12 percent and fees revenues declined 20 percent. Yahoo’s marketing revenues from Owned and Operated sites were $872 million down 10 percent decrease compared to $966 million for the same period in 2008. The decrease was driven by a 3 percent decline in search advertising revenue and a 13 percent decline in display advertising revenue.

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Marketing services revenues from Affiliate sites were $511 million for the first quarter of 2009, a 16 percent decrease compared to $606 million for the same period of 2008. The decrease was driven primarily by Yahoo!’s efforts to improve traffic quality and lower revenue per search.

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Segmentwise, international revenue shrunk from $468 million last quarter and $510 million for the same quarter last year, to $392 million. US revenues also declined to #1188 million. 

Yahoo also said that their revenue has been impacted by the sale of Kelkoo and lower fees from broadband partnerships and music. 

More from the earnings call.