Yahoo 2013 Annual Report Download - page 52

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Revenue ex-TAC by Segment
Americas
Americas revenue ex-TAC for the year ended December 31, 2013 increased $43 million, or 1 percent, compared
to 2012. The increase in Americas revenue ex-TAC was primarily attributable to an increase in search revenue
ex-TAC of $148 million and fees revenue of $87 million. The increase in search revenue ex-TAC was
attributable to an increase in sponsored searches on Yahoo Properties and higher revenue per search due to
improved ad formats. The increase in fees revenue was primarily due to increased royalty revenue resulting from
the amended TIPLA agreement with Alibaba Group. This was partially offset by a decline in display revenue ex-
TAC of $142 million due to declines in the number of Ads Sold on a premium basis on Yahoo Properties, and a
decline in listings revenue of $50 million.
Americas revenue ex-TAC for the year ended December 31, 2012 increased $136 million, or 4 percent, compared
to 2011. The year-over-year increase in Americas revenue ex-TAC was primarily attributable to increased search
revenue ex-TAC from increases in sponsored search on Yahoo Properties, which was partially offset by a decline
in display revenue ex-TAC.
Revenue ex-TAC in the Americas accounted for approximately 75 percent of total revenue ex-TAC for the year
ended December 31, 2013, compared to 73 percent in 2012 and 72 percent in 2011.
EMEA
EMEA revenue ex-TAC for the year ended December 31, 2013 decreased $16 million, or 4 percent, compared to
2012, due to declines in display revenue ex-TAC on Yahoo Properties driven by a decrease in premium
advertising primarily related to Mail.
EMEA revenue ex-TAC for the year ended December 31, 2012 decreased $50 million, or 12 percent, compared
to 2011. The year-over-year declines in EMEA revenue ex-TAC were primarily related to decreased search and
display revenue ex-TAC. Search revenue ex-TAC declined due to the revenue share with Microsoft associated
with the Search Agreement. Display revenue ex-TAC on Yahoo Properties also declined due to a decrease in
premium advertising related to a decline in supply which was partially offset by increased pricing.
Revenue ex-TAC in EMEA accounted for approximately 8 percent of total revenue ex-TAC for the year ended
December 31, 2013, compared to 8 percent in 2012 and 9 percent in 2011.
Asia Pacific
Asia Pacific revenue ex-TAC for the year ended December 31, 2013 decreased $70 million, or 8 percent
compared to 2012. The decline was primarily attributable to a decrease in revenue ex-TAC related to the closure
of our Korea business of $63 million and unfavorable foreign exchange rate fluctuations.
Asia Pacific revenue ex-TAC for the 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.
Revenue ex-TAC in Asia Pacific accounted for approximately 17 percent of total revenue ex-TAC for the year
ended December 31, 2013, compared to 19 percent for both 2012 and 2011.
Direct Costs by Segment
Americas
For the year ended December 31, 2013, direct costs attributable to the Americas segment increased $14 million,
or 2 percent, compared to 2012. The increase in direct costs was primarily due to increases in marketing expenses
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