Communication media company Oath, born out of Verizon’s Yahoo and AOL merger, has posted a 6.9% slump in third quarter revenues to $1.8bn — coinciding with a spell of disruption as management battle to integrate legacy AOL and Yahoo ad platforms by the end of the year.
The dip in fortunes has forced Oath to row back on its ambitious target of generating $10bn in sales by 2020 as the organisation concedes that revenues are likely to be ‘relatively flat in the near term’.
Driving the decline has been a continued drop in search and desktop traffic which has undermined growth in both mobile and video, driven by a headline partnership with the NFL to stream games to mobile devices.
Addressing the results chief financial officer Matt Ellis remarked: “The cost side of that business is being managed well. We just need the revenue side of the business to achieve its potential, too — and then we’ll be happy with the business.”
Verizon paid $10bn to acquire the fallen internet titans of AOL and Yahoo back in 2015 and 2017 respectively, part of a growing media and tech empire which now extends to TechCrunch, Engadget and Tumblr.
Oath recently named K. Guru Gowrappan as chief executive officer, taking over for the departing Tim Armstrong.