UPDATE 1-Yahoo fourth-quarter profit slips
Jan 28 (Reuters) - Yahoo Inc reported net revenue of $1.22 billion in the fourth quarter, up 4 percent year-on-year, as an increase in search advertising revenue offset weakness in the Web portal's display ad business.
Yahoo shares rose 4.5 percent to $21.22 in after hours trading on Monday.
The company said its fourth-quarter net income was $272.3 million, or 23 cents per share, versus $295.6 million, or 24 cents per share in the year-ago period.
Excluding certain items, Yahoo said it had earnings per share of 32 cents, versus the average analyst expectation of 28 cents according to Thomson Reuters I/B/E/S.
Yahoo said that search revenue increased 4 percent to $482 million in the fourth quarter, while display advertising revenue fell by 3 percent to $591 million.
Chief Executive Marissa Mayer is moving to revive the company's fortunes after several years of declining revenue. Yahoo's stock has risen roughly 30 percent since she became CEO, reaching its highest levels since 2008.