In its quarterly results conference call this morning, Yahoo reported that robust cost controls had out-weighed a slow-down in online ad spending.

As a result, profit increased 7.8% over the year-ago quarter, slightly better than analysts had been expecting.

Yahoo might have just posted another dismal worldwide result, and announced plans to dismiss 5% of its workforce (some of whom are “not f****** doing anything”, according to sailor-mouthed new chief executive Carol Bartz).

But figures filed with the Companies Office show that Yahoo!Xtra had buoyant time of it on the New Zealand market.

After a 78% profit fall, Yahoo is to lay off a further 5% of its workforce. Investors hope the poor result will help push Yahoo into an advertising alliance or merger with Microsoft.

In the wake of its poor quarterly result announced this morning, Yahoo has announced plans to cull 675 workers, or 5% of a workforce already trimmed by 2500 last year.

The search giant has unveiled a new “behavioural targeting” feature for websites on its AdSense network – matching a similar service launched by YahooXtra in New Zealand last month, and enraging privacy advocates.

It’s old hat to match context-sensitive text ads to the article, or video, that a web surfer is currently watching.