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Yahoo's 1Q shows modest gains in ad business

Yahoo's 1st-quarter results offer hope for long-awaited turnaround in ad business

SAN FRANCISCO (AP) -- Yahoo's listless advertising sales showed signs of life in the first quarter to overshadow a 20 percent drop in earnings.

The results released Tuesday highlight the contrasting performances of Yahoo's investment portfolio and the company's business of running ad-supported online services. Yahoo Inc. is making most of its money from its stakes in two Asian Internet companies — China's Alibaba Group and Yahoo Japan.

Meanwhile, Yahoo's ad revenue remains stuck in a funk, although some segments showed modest improvement in the first quarter.

Yahoo earned $312 million, or 29 cents per share, during the first three months of this year. That compared to $390 million, or 35 cents per share, at the same time last year.

Revenue dipped 1 percent to $1.13 billion.