Google's profits lifted by higher advertising revenues
Posted in: Miscellaneous at 15/10/2010 17:25
Google's latest quarterly results have beaten market expectations after it posted a 32% rise in profits.
The internet giant made a net profit of $2.17bn (£1.4bn) in the three months to 30 September, up from $1.6bn for the same period a year earlier.
Google thanked higher advertising revenues, but also the success of its newer businesses, such as its Android mobile phone operating system.
Google's Income Rises 32%, Topping Forecast
Google has spent the last few months arguing to anyone who will listen that its new advertising businesses -- including ads with images and video and on cellphones -- will fuel its next phase of growth. On Thursday, the company finally gave some numbers to support the claim.
Search advertising revenue still drove Google's better-than-expected performance in the third quarter, when revenue climbed 23 percent and net income rose 32 percent. But for the first time Google said on a call with analysts, display ads -- nontext ads with images and video on YouTube and other Web sites -- are on track to generate more than $2.5 billion in revenue in the coming year, while mobile ads are on track to contribute another $1 billion.