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Google posts a 35 per cent increase in revenue

Profit in the three months ending 30 June was $3.44bn
Fri Jul 20 2012, 11:24
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INTERNET GIANT Google has posted revenues of $12.21 billion for the second quarter, up 35 per cent from the same quarter last year.

Google reported on Thursday after the markets closed that this led to earnings in the three months ended 30 June of $3.44bn, an increase on its $3.32bn second quarter profit in 2011.

However, Google posted relatively poor margins for recently acquired Motorola Mobility, reporting an 18.6 per cent loss. Google CFO Patrick Pichette noted, "We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions."

Despite earlier fears that advertising revenue might have declined due to ongoing financial difficulties across the world, advertising spending grew, with paid click revenues increasing 42 per cent, although cost-per-click income dropped 16 per cent.

Surpassing analysts' expectations, Google's shares rose 2.9 per cent to $610.40 in afterhours trade.

"Google standalone had a strong quarter with 21 per cent year-on-year revenue growth, and we launched a bunch of exciting new products at I/O - in particular the Nexus 7 tablet, which has received rave reviews," Google CEO Larry Page said on its web site on Thursday.

"This quarter is also special because Motorola is now part of the Google family, and we're excited about the potential to build great devices for users," he added.

Google's conference call also confirmed that Page has lost his voice and will be unable to speak at any public appearances until further notice. µ


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