Bangalore: Yahoo CEO, Marissa Mayer has delivered a mixed report card in her yearlong effort to turn a failing company around. Despite the company showing 46 percent jump in its quarterly earnings, its revenue continued declining, reports The Wall Street Journal.

WSJ says that Mayer’s strategy to sacrifice immediate gains for company’s future growth has led to the continued deterioration of its core business of selling online ads; Yahoo posted a second quarter revenue drop of 7 percent from the same time last year to $1.14 billion. It would be just 1 percent, if the company’s payout to its business partners is excluded.

The display ad revenue which roughly accounts to 40 percent of company’s sales dropped 12 percent with decline in the number and prices of graphical and video ads; its search-ad revenue also fell 9 percent.

However, the online advertising market in U.S. grew by 15 percent last year, according to the Interactive Advertising Bureau. Yahoo’s rivals like Google, Facebook and Twitter made most out of it, while the growth of the company itself faltered.

The silver lining for Yahoo came from strong performance of China-based e-commerce giant Alibaba Group, in which Yahoo holds a 23.5 percent stake. The company’s stakes in Alibaba and Yahoo Japan account for about half of its entire market valuation, according to analysts.

The Sunnyvale, Calif., company's revenue fell to $1.14 billion from $1.22 billion, the second consecutive year-over-year quarterly drop. Yahoo's earnings raised to $331 million, or 30 cents a share, from $227 million, or 18 cents a share, a year earlier.

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