S&P lifts Yahoo! outlook to positive

Standard & Poor's said it revised its outlook on Yahoo! Inc. to positive from stable, based on good revenue and EBITDA growth, increased contribution from paying relationships and the solid growth prospects of the online advertising market.

At the same time, the agency said it affirmed its BBB- rating on Yahoo!, adding that as of Sept. 30, total debt was $750 million.

The rating on Yahoo! reflects the company's well-established Internet brand, high profit margins, good discretionary cash flow generation and ample cash cushion, S&P said, adding that these factors are somewhat offset by the company's revenue and earnings concentration from advertising, intense competition in sponsored search from a dominant competitor and numerous upstarts and the challenges of retaining the company's market position and relevance in a rapidly changing internet marketplace.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.