Google ad revenue soars as profits hit $2.79bn

Jul 20, 2012 | Online advertising

Google has reported a profit of $2.79 billion in the second quarter, up 11% over the same period of last year, as its search ad clicks increased by a massive 42%. The details were announced in the company’s first financial statement since it finalised its acquisition of Motorola Mobility in May. Motorola brought in $1.25 […]

Google has reported a profit of $2.79 billion in the second quarter, up 11% over the same period of last year, as its search ad clicks increased by a massive 42%. The details were announced in the company’s first financial statement since it finalised its acquisition of Motorola Mobility in May.


Motorola brought in $1.25 billion in revenue in the quarter that ended June 30, about 10% of Google’s total revenue. But Motorola also accounted for an operating loss of $233 million, which brought Google’s total operating income down as a percent of its revenue by 6 percentage points.
Google’s total revenue, including Motorola sales, was $12.21 billion, compared with $9.02 billion a year earlier.
“Google standalone had a strong quarter with 21pc year-on-year revenue growth, and we launched a bunch of exciting new products… in particular the Nexus 7 tablet, which has received rave reviews,” said chief executive Larry Page.
“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.”
Google’s advertising business remained strong, bringing in nearly $11 billion, a 21% increase year over year.
But the company’s cost per click, or what it earns from advertisers per click, was down 16% from the same period of last year.
The metric, which has been cause for some concern among financial analysts, did rise a single percentage point since the first quarter of this year.
Google Finance Chief Patrick Pichette said the company was still in the process of evaluating every business and division of Motorola.
“I need a bit of patience for us to complete our homework,” Pichette said, when asked about Google’s views on Motorola’s television set-top box business.

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