Yahoo! reported revenues of $1,573 million for the quarter ended June 30, 2009, a decrease of 13% from the second quarter of 2008, after the close of the market today.

Excluding the impact of currency rate fluctuations, revenues for the second quarter of 2009 would have declined 8% from the second quarter of 2008.

Yahoo profit was $141.4 million, or 10 cents per share, in the three months ending in June, up from income of $131.2 million, or 9 cents per share, last year.

Marketing services revenues from Owned and Operated sites were $858 million for the second quarter of 2009, a 16 percent decrease compared to $1,016 million for the same period of 2008.

The decrease was driven by a 15% decline in search advertising revenue and a 14% decline in display advertising revenue.

So basically revenues dropped and cost cutting measures got Yahoo more profitable.

The market sure didn’t like the report as shares of Yahoo are trading down 4.% in aftermarket activity since the report was released.

Will reduced revenue force Yahoo to finally do a deal with Microsoft?

Stay Tuned