Yahoo 2012 Annual Report Download - page 59

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Revenue ex-TAC in EMEA accounted for approximately 8 percent of total revenue ex-TAC for the year ended
December 31, 2012, compared to 9 percent and 8 percent in 2011 and 2010, respectively.
Asia Pacific
Asia Pacific revenue ex-TAC for year ended December 31, 2012 was flat compared to 2011 due to an increase in
display revenue ex-TAC offset by a decline in search revenue ex-TAC.
Asia Pacific revenue ex-TAC for the year ended December 31, 2011 increased $79 million, or 11 percent,
compared to 2010. The increase in Asia Pacific revenue ex-TAC was primarily driven by an increase in our
display advertising business, fee-based services and the favorable effects of foreign currency exchange rate
fluctuations.
Revenue ex-TAC in Asia Pacific accounted for approximately 19 percent of total revenue ex-TAC for the year
ended December 31, 2012, compared to 19 percent and 16 percent in 2011 and 2010, respectively.
Direct Costs by Segment
Americas
For the year ended December 31, 2012, direct costs attributable to the Americas segment increased $37 million,
or 5 percent, compared to 2011. The increase in direct costs was primarily due to higher compensation and
content costs partially offset by lower marketing costs and bandwidth and other cost of revenue.
For the year ended December 31, 2011, direct costs attributable to the Americas segment decreased $9 million, or
1 percent, compared to 2010. The decrease was primarily due to lower compensation and marketing costs
partially offset slightly by higher content costs.
EMEA
For the year ended December 31, 2012, direct costs attributable to the EMEA segment decreased $4 million, or 2
percent, compared to 2011. The decline was primarily due to decreased compensation costs and marketing
expenses in the region. This was partially offset by increased content costs in the region.
For the year ended December 31, 2011, direct costs attributable to the EMEA segment increased $16 million, or
11 percent, compared to 2010. The increase was primarily due to higher compensation costs driven by higher
headcount and an increase in content costs.
Asia Pacific
For year ended December 31, 2012, direct costs attributable to the Asia Pacific segment decreased $1 million, or
1 percent, compared to 2011. The decrease was primarily due to decreased marketing expenses offset by higher
bandwidth and other cost of revenue.
For the year ended December 31, 2011, direct costs attributable to the Asia Pacific segment increased $50
million, or 28 percent, compared to 2010. The increase was primarily due to higher compensation costs driven by
higher headcount and an increase in bandwidth and other cost of revenue.
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