Yahoo profits rise but sales dip as rivals dent market

Yahoo has reported a dip in its revenue for the second quarter due to weaker-than-expected advertising sales.

The company said it generated $1.08bn (£670m) in revenue in the three months to June, a 4.6% decline compared to the same period last year.

The data comes as Yahoo has been facing increasing competition from rivals Google and Facebook.

However, despite a drop in revenue, Yahoo said its profits rose by 11% from a year ago to $237m.

Carol Bartz, the chief executive of Yahoo said the second quarter was a "mix of good, encouraging and, at the same time, unsatisfactory" developments.

"The issue was we did not have enough sales people in front of the big clients," she said.