Google beats forecasts as mobile business begins to pay off

18/10/2010

Google registered a 32 per cent jump in profits, beating market expectations and highlighting the success of its emerging businesses. The internet giant posted net income of $2.2 billion (£1.4bn) after revenues rose 23 per cent to 7.3 billion US dollars (£4.6bn) in the third quarter of the year.

Google said its core business grew very well, while its newer businesses continued to show significant momentum. Google recently paid $3.2 billion for DoubleClick, a display ad network, and $681 million for mobile-ad firm AdMob.

18/10/2010

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Investors had feared that Google was spending recklessly on initiatives such as its Android mobile software, acquisitions and renewable energy projects with uncertain returns.

But Google said its mobile and display advertising operations generated annualised revenue run rates of more than $1 billion and $2.5 billion, respectively, underscoring the outcome of investments into smartphones and online projects.

Text links placed above or alongside search results are still Google's main source of revenues, but the company has also invested billions on image-based display adverts, as well as ads inside web videos and mobile phones.

The California-based firm recruited 1,500 new staff in the quarter, meaning it has taken on 3,500 new employees so far this year.

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