Google’s second quarter financial results have failed to meet expectations, despite posting a 16% rise in profits. Announcing the company’s Q2 results, Google posted profits of $9.7bn (£6.4bn), up 16% from a year ago but less than analysts were expecting. This lead to shares in Google dropping 4% last night in after hours trading. Google’s […]
Google’s second quarter financial results have failed to meet expectations, despite posting a 16% rise in profits.
Announcing the company’s Q2 results, Google posted profits of $9.7bn (£6.4bn), up 16% from a year ago but less than analysts were expecting.
This lead to shares in Google dropping 4% last night in after hours trading.
Google’s advertising revenue also rose 15%, and the company said that a higher proportion of revenues are coming from mobile ads, which are currently cheaper than desktop counterparts.
Chief executive Larry Page said that adapting to mobile was a challenge the company was embracing. “The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google,” he said.
Page mentioned the company’s revamped AdWords programme, which has been well-received.
Micrsosoft Surface fails to take off
Meanwhile, Google rival Microsoft also posted disappointing second quarter results.
The software giant said it made $4.5bn in the second quarter, but announced that it would take a $900m charge relating to poor sales of its Surface tablet.
Declining PC sales – which recently saw their longest slide in five years – have hurt Microsoft’s efforts to boost its business with the sale of its Windows 8 operating software.
Last week, the company also announced that it would cut the price of its Surface tablet amid sluggish sales.
