Yahoo has reported a net profit of $226.6 million for the quarter ending June 30, 2012, down 4.4% from $237 million reported during the corresponding period last year. The total revenues for Yahoo stood at $1.22 billion, a 1% decline from $1.23 billion reported during Q2 2012 while the revenues excluding the traffic acquisition costs (TAC) stood at $1.08 billion, a minor increase from $1.07 billion reported during Q2 2012.

This was the first earnings call for Yahoo after the appointment of Google’s longtime executive Marissa Mayer as the company’s new CEO, yesterday. However, Mayer expectedly skipped the Q2 earnings call since it was her first day at work. Timothy Morse, Chief Financial Officer and Executive Vice President, Yahoo presided over the Q2 earnings call since the outgoing interim CEO Ross Levinsohn also decided to skip it.

Operational Highlights

– Fred Amoroso was named chairman of Yahoo!’s board of directors and Daniel S. Loeb, Harry J. Wilson, and Michael J. Wolf joined the Yahoo! board.

– Yahoo’s unique visitors grew by 2% YoY on Yahoo-branded sites and 1% YoY on its media property for the quarter. Page views for its media properties increased by 5% YoY while the page views for its communications & communities and search decreased by 11% and 13% YoY. Minutes spent increased 8% in communications & communities and decreased 10% in media properties, according to comScore metrics.

– Yahoo had announced a definitive agreement with Alibaba to sell one half of its 40 percent stake to Alibaba for $7.1 billion which includes $6.3 billion in cash and up to $800 million in newly-issued Alibaba preferred stock. Further, Yahoo was also allowed to sell one-fourth of its stake (10%) at the time of Alibaba IPO in the future or require Alibabd to repurchase these shares at the IPO price. Yahoo will also have registration and marketing support rights from Alibaba to help them sell its remaining shares whenever Yahoo prefers, following a customary lock-up period.

– Yahoo had also signed a strategic alliance with Facebook to resolve its patent disputes, cross-license their patent portfolios, launch a new advertising partnership as well as extend and expand its distribution arrangements with the social networking giant. Yahoo said that it will also work with Facebook to develop and offers premium media experiences to consumers & advertisers across both Yahoo and Facebook portals.

– Yahoo launched Axis, a iOS browser app and a search-oriented desktop browser extension which offers instant visual previews for search queries and syncs search history, bookmarks, and other user data across all compatible devices.

– Yahoo launched an online advertising solution Genome which combines Yahoo data with Interclick’s third party data, a company it acquired in December 2011, along with advertisers’s data and a premium media footprint to provide a custom audience solutions for marketers.

– On the content side, Yahoo signed a strategic content, programming and distribution alliance with CNBC to provide a broadcast platform for Yahoo Finance and expand CNBC’s online reach. As per the deal, CNBC became a premier content source for Yahoo Finance in the United States which includes video clips, news and analysis while Yahoo Finance’s journalists will contribute to CNBC’s Business Day programming. Later this year, both the companies plan to create co-branded original videos which will appear on both Yahoo! Finance and CNBC.com.

– Other prominent partnerships during the quarter include a cross-platform content distribution and promotion deal with Clear Channel; a global content and promotion deal with Spotify; a deal with Playtone and Reliance Entertainment to premiere the latter’s animated series ‘Electric City’ on Yahoo screen; a deal with Liquid Comics to distribute latter’s premium original, motion-comic programs on Yahoo Screen; and the extension of its deal with Eurosport to host and operate the co-branded Yahoo Eurosport site in key International markets.

– During the earnings call, Morse noted that the company’s mobile revenue increased by 50% this quarter, although he didn’t reveal any specific numbers.

– Advertising: Display Advertising increased by 1% to $473 million from $467 million in Q2 FY-11, and Search advertising increased by 4% to $385 million from $371 million in Q2 FY-11.

– APAC Region: In terms of geographical contribution to revenue, the APAC market contributed $211 million to Yahoo’s income, a 4% increase compared to the same quarter last year. The segment contribution margin for the region was 73% for the region, compared with 71% for the same quarter last year. A 185 basis points increase in segment margin and a 3% reduction in direct costs.

Americas: The Americas contributed $776 million to revenues, up 1% from $769 million during the same quarter last year. A 114 basis points reduction in segment margin to 77% and a 6% increase in direct costs.

Release | Earning Slides (pdf) | Conference Call Transcript on Seeking Alpha