While the industry is reeling under the worst economic downturn since the Great Depression, the internet search giant Google seems to be unfazed by the ongoing recessionary trend and reported an impressive 18 percent hike in quarterly profits.
Announcing its financial results for the quarter ended on 30 June, Google notified that it earned $4.66 per share in the quarter, up from $3.92 per share posted by the company for the same period a year ago.
Furthermore, net profits for Google were pegged at $1.48 billion for the quarter, an 18 percent jump from the same period a year back, and its revenues rose by 3 percent to $5.52 billion.
After deducting commissions and charges that Google pay to advertising and distribution partners, net revenues for Google came in at $4.07 billion, slightly more than analysts’ forecasts of $4.06 billion.
The growth, achieved through what company called “responsible efforts to manage expenses”, has been an astonishing boost for the company which has fared commendably well in shaky economic times.
Touting these impressive results amidst frosty economic environment, Google’s chief exec Eric Schmidt said, “Google had a very good quarter, especially given the continued macro-economic downturn. We remain focused on investing in technical innovation to drive growth”.
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Google managed to shrug off any concerns about its core business, online advertising, which accounts for more than 98 percent of its revenues. The search engine giant is already exploring other avenues to diversify its revenue sources and it is quite incredible that a company has managed to grow so much based on one segment alone.