Friday, 22 January 2010

Google reports big growth in net profits

There is widespread press coverage concerning Google's latest quarterly financial statement, such as this article from eWeek. The figures for the last quarter of 2009 were above most analysts' expectations, with net profits of US$1.97 billion on sales of just under US$5bn. This profit figure is nearly 5 times higher than the same period a year ago, when Google made US$382 million. profit for the year rose by 54% to US$6.52 billion.

Google's CEO, Eric Schmidt said that the digital economy remains very strong and the company would be continuing to develop new commerce and social initiatives in 2010. There would also be a plan for more acquisitions in different areas, following the acquisition of On2 Technologies, Recaptcha, AdMob, Gizmo5, Teracent and AppJet in 2009.

In the latest financial statement, Google also reported that its traffic acquisition costs - the portion of revenues that Google shares with its ad partners - accounted for 27% of the revenues in Q4, totaling $1.72 billion. Paid clicks for ads served on Google sites and those of its AdSense partners increased 13% from Q4 2008 and 9%% over Q3 2009.

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