Yahoo! looks east to expand broadband

Yahoo!, the web portal, yesterday said it was considering a move into the fiercely competitive internet access market in Europe after success with a broadband product in the US.

The comments were made by the managing director of the European business, Mark Opzoomer, after Yahoo! provided evidence that efforts to rebuild the US business are beginning to pay off. In results posted late Wednesday, the company swung into profit during the fourth quarter and recorded a 51% jump in revenues. Earnings were $46.2m (£28.6m), reversing a loss of $8.7m a year ago.

Faced with a dramatic drop off in advertising when the dotcom bubble burst, Yahoo! embarked on a strategy of diversifying its revenue streams. The plans were the brainchild of former Warner Brothers executive Terry Semel who was hired to rescue one of the best known brands of the internet.

Around 2.2m people have signed up for premium services in the US including online personals, larger email boxes and high-speed internet access. The company offers broadband access to one-third of the US and will expand that to the rest of the country this year, pitching Yahoo! into direct competition with the likes of America Online and Microsoft.

Yahoo! Europe has performed sluggishly compared with the US and Mr Opzoomer is keen to draw on elements of the US plan to bring the loss-making unit into the black. Premium services will be launched in Europe in the first half of 2003.