Marketing services revenue was $1.1bn for the third quarter of 2005, a 46% increase compared with $797m for the same period of 2004.
Yahoo! was also helped by a strong performance from its subscription-based services, such as its music and video offerings, which helped it achieve a 55% rise in fees to $170m, compared with $110m last time.
Terry Semel, chairman and chief executive officer of Yahoo!, said: "Yahoo! had another record quarter and continued to see solid growth across our business. We introduced a number of new and innovative products and services and continued to provide more effective means for advertisers to engage with consumers.
"Our ongoing ability to execute against plan and utilise our industry-leading technology continues to position us for long-term growth and enables us to provide our users with the best content and most relevant online experience."
Despite the strong revenue performance profits were flat in the third quarter. Net income was up only slightly at $254m, compared with $253m in 2004.
Internationally, Yahoo! put in a stronger performance overall than its US business.
International revenues for the third quarter of 2005 were $407m, a 62% increase from the $252m of 2004. In the US, revenues for the third quarter were $923m, a 41% increase.
At the same time, Yahoo! said it has acquired UK search firm www.Whereonearth.com for an undisclosed sum.
Whereonearth offers local search and advertising services for the internet and mobile phones. It has already worked with Yahoo! as well as other internet firms such as Lastminute.com and 3.
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