Google Q3 profits jump 27% to $1.64 bn
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Last Updated: Friday, October 16, 2009, 15:54
  
New York: Internet search engine giant Google has reported a 27 percent growth in net income at USD 1.64 billion for the third quarter on the back of higher advertising revenues.

The company had a net income of USD 1.29 billion in July-September last year, Google said in a statement.

Google registered revenues of USD 5.94 billion for the quarter under review, an increase of 7 percent over that in the third quarter of 2008.

"Google had a strong quarter -- we saw seven per cent year-over-year revenue growth despite the tough economic conditions. While there is a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future," Google CEO Eric Schmidt said.

Google-owned sites contributed 67 percent to the total revenues, generating USD 3.96 billion in the third quarter against USD 3.67 billion in the same period last fiscal.

The company's partner sites generated revenues, through AdSense programmes, of USD 1.80 billion in the third quarter, a 7 percent increase same period last year.

Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the third quarter of 2009, TAC totalled USD 1.56 billion, or 27 percent of advertising revenues.

Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to USD 1.56 billion in the third quarter of 2009, compared to TAC of USD 1.5 billion in the year-ago period.

Search engine giant's revenues from markets outside the US totalled USD 3.14 billion, representing 53 of total revenues in the third quarter of 2009.

The company's revenue from pad clicks which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased about 14 percent over the third quarter of 2008.

As of September 30, 2009, cash, cash equivalents, and short-term marketable securities were USD 22 billion.

During the quarter, Google has reduced its workforce by 121 people across the world to 19,665 employees as of September 30, 2009.

Bureau Report


First Published: Friday, October 16, 2009, 15:54


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