Google profits surge on growing ad revenue

Google reported a surge in quarterly profit to $2.79 billion on the back of rising online advertising revenue, beating Wall Street expectations.

The California-based online search titan's profit rose 11 percent in the quarter ended June 30 as consolidated revenue climbed 35 percent to $12.21 billion compared with the same fiscal quarter last year.

"Google standalone had a strong quarter with 21 percent 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, on Thursday.

"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 stock price rose to $610.45 in after-hours trade that followed release of the earnings figures.

The company has stated publicly that it intends to allow newly acquired Motorola Mobility to keep its autonomy as it battles in the hotly contested smartphone market.

Google in May completed the $12.9 billion deal for Motorola Mobility, a key manufacturer of smartphones and other devices that put the Internet giant in head-to-head competition with Apple.

Google acquires 17,000 patents with the purchase of Motorola Mobility and has been strengthening its patent portfolio in the fight for dominance in the smartphone and tablet market.

Motorola Mobility was created in 2011 when US-based Motorola Inc. split the company into two separate entities: a mobile devices unit, and a government and public safety division known as Motorola Solutions.

"We are totally excited about this opportunity we have at Motorola," Google chief financial officer Patrick Pichette said during an earnings conference call.

"There is palpable excitement," he continued. "Clearly, people should expect some changes at Motorola."

Page did not take part in the conference call as is the usual routine, with executives saying that the Google boss and co-founder was still recovering from a throat problem that left him temporarily unable to speak.

"Larry has lost his voice," said Google chief business officer Nikesh Arora. "That means he cannot do any speaking engagements, including this earnings call, but he continues to run the company."

Google's dominant share of the US online search advertising market will grow to 77.9 percent this year from slightly less than three-quarters last year, according to industry tracker eMarketer.

In comparison, the piece of the market held by Microsoft search engine Bing was expected to remain unchanged at seven percent.

Google will rake in one of every 10 dollars spent on advertising this year in the United States as the overall market reaches $169.5 billion, according to eMarketer.

Google is also dominating the US mobile advertising market, seen as a key source of revenue for Internet firms as modern lifestyles revolve increasingly around smartphones and tablet computers.

Spending on US mobile ads is projected to leap 80 percent this year to $2.61 billion with Google's share at nearly 52 percent, according to eMarketer.

"Mobile is very important," Arora said. "It is evident in our commitment to Android as well as our purchase of Motorola."

On a separate note, executives announced that the Google+ social network has grown to 250 million users and that it continues to be integrated through the company's online venues as a "backbone" for features based on friends.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • N. Korea fires missiles in anger at South-US military drills
    N. Korea fires missiles in anger at South-US military drills

    North Korea fired two short-range ballistic missiles into the sea and vowed "merciless" retaliation Monday as the US and South Korea kicked off joint military drills denounced by Pyongyang as recklessly confrontational. The annual exercises always trigger a surge in military tensions and warlike rhetoric on the divided peninsula, and analysts saw the North's missile tests as a prelude to a concerted campaign of sabre-rattling. "If there is a particularly sharp escalation, we could see the …

  • Couple married 67 years holds hands in final hours together
    Couple married 67 years holds hands in final hours together

    FRESNO, Calif. (AP) — After spending 67 years together as devoted husband and wife, there was no question how Floyd and Violet Hartwig would end their lives — together. …

  • Hijacked Indonesian vessel found in Davao
    Hijacked Indonesian vessel found in Davao

    An Indonesian cargo vessel that was hijacked a month ago in North Sulawesi, Indonesia has been found stuck in the waters off Mati, Davao Oriental, the Philippine Coast Guard (PCG) reported yesterday. PCG spokesperson Armand Balilo said the PCG- Southeastern Mindanao district was informed on Feb. 23 that the M/T Rehoboth was found aground off Barangay Cabuaya. Four personnel from the local PCG district office were sent to verify the report. The vessel was reportedly hijacked by …

  • Military steps up offensive vs BIFF, Abu Sayyaf
    Military steps up offensive vs BIFF, Abu Sayyaf

    Armed Forces of the Philippines (AFP) chief Gen. Gregorio Pio Catapang Jr. has ordered the sustained campaign against the Abu Sayyaf and the Bangsamoro Islamic Freedom Fighters (BIFF) following the successive offensives against the armed groups last week. A total of 24 Abu Sayyaf bandits and two soldiers were killed in recent clashes in Sulu last week. The Joint Task Group Sulu has received information that Abu Sayyaf leader Radulan Sahiron was wounded during one of the encounters but this is …

  • 'Jihadi John' relatives under watch in Kuwait
    'Jihadi John' relatives under watch in Kuwait

    Kuwaiti authorities are closely monitoring several relatives of "Jihadi John" who live and work in the Gulf emirate where the Islamic State executioner was born, press reports said on Sunday. A number of relatives of Mohammed Emwazi, named as the militant who has beheaded at least five Western hostages, are working in Kuwait and like him hold British citizenship, Al-Qabas newspaper reported. "Security agencies have taken the necessary measures to monitor them round the clock," the paper said, …

  • Militants want US Marines pulled out of Negros
    Militants want US Marines pulled out of Negros

    The militant group Bagong Alyansang Makabayan (Bayan) is calling for the pullout of US Marines who arrived in Sagay City, Negros Occidental last Wednesday to train Special Action Force (SAF) commandos and members of the allied forces. The SAF commandos and the allied forces will secure the Asia-Pacific Economic Cooperation (APEC) ministerial meeting in this city. Bayan-Negros secretary general Christian Tuayon said the US troops might violate the human rights of activists, especially those …

  • Binay backs house arrest for JPE, GMA
    Binay backs house arrest for JPE, GMA

    Vice President Jejomar Binay yesterday supported proposals to put Sen. Juan Ponce Enrile and former President now Pampanga Rep. Gloria Macapagal- Arroyo under house arrest. “Government prosecutors are opposing house arrest for… Enrile. Binay issued the statement after the 91-year-old Enrile was rushed to the Makati Medical Center on Thursday due to pneumonia. House arrest for him would be the compassionate thing to do,” he added. …

  • Interview: Australia says hunt for missing MH370 jet may be called off soon
    Interview: Australia says hunt for missing MH370 jet may be called off soon

    By Matt Siegel CANBERRA (Reuters) - The search for missing Malaysia Airlines Flight MH370 cannot go on forever, Australia's deputy prime minister said, and discussions are already under way between Australia, China and Malaysia as to whether to call off the hunt within weeks. No trace has been found of the Boeing 777 aircraft, which disappeared a year ago this week carrying 239 passengers and crew, in what has become one of the greatest mysteries in aviation history. The search of a rugged …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options