Google Q2 net income jumps 11% on rising advertising revenue
Internet giant Google Inc has reported an over 11 percent rise in net income at USD 2.79 billion for the April-June quarter of this year, driven by rising online advertising revenue.
New York: Internet giant Google Inc has reported an over 11 percent rise in net income at USD 2.79 billion for the April-June quarter of this year, driven by rising online advertising revenue.
The net income of the search engine giant for the second quarter of 2011 stood at USD 2.51 billion.
The consolidated revenues of Google Inc for the second quarter this year stood at USD 12.21 billion registering an increase of 35 percent as against last year.
The robust revenue growth for the internet giant came in mainly from rising advertising revenues, which stood at USD 10.96 billion, or 90 percent of consolidated revenues, in the second quarter of 2012, the company said in a statement.
Google's advertising revenues increased 21 percent year on year to USD 10.96 billion from USD 9.03 billion in the year ago period.
"Google standalone had a strong quarter with 21 percent 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.
Page added that "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 Inc completed its acquisition of Motorola Mobility Holdings Inc on May 22, this year.
The assets and liabilities as well as the operating results of Motorola were included in Google Inc's consolidated balance sheet as of June 30, 2012.
In the second quarter Motorola revenues stood at USD 1.25 billion or 10 percent of consolidated revenues in the second quarter of 2012.
Page reportedly did not take part in the conference call as he was still recovering from a throat problem that left him temporarily unable to speak.
On a worldwide basis, Google said it employed 54,604 full-time employees (including Motorola) as of June 30, 2012, compared to 33,077 full-time employees as of March 31, 2012.
Net cash provided by operating activities in the second quarter of 2012 totaled USD 4.25 billion, compared to USD 3.52 billion in the second quarter of 2011.
In the second quarter of 2012, capital expenditures were USD 774 million, the majority of which was related to IT infrastructure investments, including data centers, servers, and networking equipment.
"We expect to continue to make significant capital expenditures," the company said.