Yahoo says its second-quarter profit dropped 18 per cent. It marks the latest in a long stretch of disappointing results for the Internet company.

Yahoo earned $131 million, or nine cents per share, in the three months ended in June, compared with $161 million, or 11 cents per share, at the same time last year.

Analysts had projected earnings of 11 cents per share.

The disappointing performance announced yesterday intensifies the pressure on Yahoo's management to find a way to lift the Internet company's sagging stock price after rebuffing a $47.5-billion US takeover offer from Microsoft in May.