Search ads boost Google’s profit by 24%

Internet giant Google posted a 24 per cent rise in its second quarter profit to $1.84 billion, on the back of an overall recovery in demand for online advertising. The company had registered a profit of $1.48 billion in the second quarter of 2009. Google also saw its revenue grow by 24 per cent to $6.82 billion in the second quarter of this year, against $ 5.52 billion in the year-ago period, it said in a statement .
“Solid growth in our core business and very strong growth in our emerging businesses drove 24 per cent revenue growth year-over-year,” Google CEO Mr Eric Schmidt said. The Internet search giant’s revenue from outside the US totalled $3.53 billion, accounting for 52 per cent of the total revenue in the second quarter.
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“We saw strength in every major product area, as more traditional brand advertisers embraced search advertising and as large advertisers increasingly ran integrated campaigns across search, display and mobile. We feel confident about our future and plan to continue to invest aggressively in our core areas of strategic focus,” Schmidt added.
Google’s advertising revenues grew by about 22 per cent to $6.5 billion in the second quarter of 2010, as compared to $5.33 billion in the corresponding period of the previous year.
Capital expenditure amounted to $476 million in the second quarter of 2010, a majority of which pertained to IT infrastructure investments such as data centres, servers and networking equipment.
“We expect to continue to make significant capital expenditures,” the company said in a statement.
Revenue generated by Google-owned sites saw 23 per cent growth at $4.50 billion.
Globally, Google had 21,805 full-time employees at the end of June this year – up from 20,621 workers as on March 31, 2010.