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Google profit up 18%

14 October 2011 10:00 (UTC +04:00)

Baku - APA-Economics. Google has announced its third quarter results with revenue up 33% year on year and quarterly revenue of nearly $US10 billion.

Google reported quarterly revenues of $US9.72 billion which the company said was an increase of 33% compared with the third quarter of 2010, with net income of $US2.73 billion compared with $US2.17 billion in the third quarter of 2010, an increase of about 26%.

Google said its revenues were calculated consistent with generally accepted accounting principles (GAAP), without deducting traffic acquisition costs, the portion of revenues shared with Google’s partners, which were $US2.21 billion, or 24% of advertising revenues, Google said. Google-owned sites produced revenues of about $US7 billion, or 69% of total revenues in the third quarter, Google said, a 39% increase over third quarter 2010 revenues. The company said aggregate paid clicks including clicks related to ads on Google sites and AdSense partners’ sites, increased by about 28% over the third quarter of 2010.

Net cash from operating activities was $US3.95 billion compared with $US2.89 billion in third quarter 2010, with capital expenditures totalling $US680 million, the majority of which Google said was related to IT infrastructure investments including data centres and servers.

Google chief executive Larry Page said the company had had a great quarter.

â€œGoogle+ is now open to everyone and we just passed the 40 million user mark. People are flocking into Google+ at an incredible rate and we are just getting started!"

According to a New York Times report, analysts remained skeptical about elements of Google’s strategy, depsite booming online ad sales. Some criticised the company’s "aggressive hiring" (2,585 staff were taken on in the quarter, up from 1,526 new people in the year-ago quarter bringing the total to 31,353). Analysts are still also scratching their heads over Motorola’s $US12.5 billion acquistion of Motorola Mobility (the mobile phone side of Motorola’ business, spun-off earlier this year). At the time, Google cited Motorola’s extensive patents, which it said would help protect companies in the Android camp from lawsuits brought by rivals.