Yahoo 2014 Annual Report Download - page 62

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due to increased royalty revenue resulting from the amended TIPLA agreement with Alibaba Group.
These increases were 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-
based revenue of $50 million.
Revenue ex-TAC in the Americas accounted for approximately 76 percent of total revenue ex-TAC
for the year ended December 31, 2014, compared to 75 percent in 2013 and 73 percent in 2012.
EMEA
EMEA revenue ex-TAC for the year ended December 31, 2014 decreased $4 million, or 1 percent,
compared to 2013. The decrease in EMEA revenue ex-TAC for the year ended December 31, 2014 was
primarily attributable to declines in both display and other revenue ex-TAC of $17 million each,
partially offset by an increase in search revenue ex-TAC of $30 million. Search revenue ex-TAC in the
EMEA region increased 31 percent for the year ended December 31, 2014, as compared to the same
period of 2013. The increase in search revenue ex-TAC for year ended December 31, 2014 was due to
an increase in search advertising on Yahoo Properties driven by distribution deals that contributed to
improved revenue-per-search. The decline in display revenue ex-TAC for the year ended
December 31, 2014 was due to a decline in premium ads sold on Yahoo Properties, primarily
Homepage, partially offset by an increase in non-premium advertising on Yahoo Properties, due to
the launch of native advertising in the region in 2014. The decline in other revenue ex-TAC was
primarily due to a decline in listings-based revenue.
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 Yahoo Mail.
Revenue ex-TAC in EMEA accounted for approximately 8 percent of total revenue ex-TAC for the
years ended December 31, 2014, 2013, and 2012.
Asia Pacific
Asia Pacific revenue ex-TAC for the year ended December 31, 2014 decreased $50 million, or 7
percent, compared to 2013. The decline for the year ended December 31, 2014 was primarily
attributable to declines in search and display revenue ex-TAC of $23 million and $22 million,
respectively. The decline in search revenue ex-TAC for the year ended December 31, 2014 was
primarily attributable to the revenue share with Microsoft associated with the Search Agreement. The
decline in display revenue ex-TAC for the year ended December 31, 2014 was primarily attributable to
a decline in premium advertising on Yahoo Properties due to a decline in supply. This decline was
partially offset by an increase in non-premium advertising on Yahoo Properties due to the launch of
native advertising in the region as well as an increase in display revenue from Affiliate sites. Revenue
ex-TAC in the Asia Pacific region was also impacted by unfavorable foreign exchange fluctuations of
$27 million for the year ended December 31, 2014.
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.
Revenue ex-TAC in Asia Pacific accounted for approximately 16 percent of total revenue ex-TAC for
the year ended December 31, 2014, compared to 17 percent in 2013 and 19 percent in 2012.
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