Yahoo is delaying the launch of its enhanced advertising search service following a big drop in its profits.
Second-quarter net profits fell by 78 per cent year on year, down from $755m (£413m) in 2005 to $164m (£90m) in 2006.
Yahoo's proposed new search facility will include enhanced software to analyse words used in searches and allow advertisers to target consumers with greater accuracy.
Terry Semel, chief executive at Yahoo, confirmed that the commercial launch of the service will be delayed to ensure that it meets client expectations.
The company now expects to roll out the advertising management application in the fourth quarter of this year rather than the third quarter.
Yahoo recently redesigned its UK and Ireland website to make it more attractive to advertisers.
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