Google's quarterly profit beats expectations

08:20, October 15, 2010      
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Google Inc. on Thursday posted profit in its most recent quarter that easily topped Wall Street analysts' estimates.
For the third quarter ended on Sept. 30, Google's net income reached 2.17 billion U.S. dollars, compared with 1.64 billion dollars in the same period a year earlier.
Excluding one-time items, Google said it earned 7.64 dollars per share, up from 5.89 dollars a year ago. According to Thomson Reuters, analysts had expected earnings per share of 6.69 dollars.
Google also reported revenue of 7.29 billion dollars for the quarter, representing an increase of 23 percent from the year-ago quarter.
Excluding traffic-acquisition costs paid to advertisement partners, Google's revenue was 5.5 billion dollars, better than analysts' prediction of 5.27 billion dollars.
In a sign that companies were willing to pay more for ads online, Google said that its average cost-per-click in the quarter increased about 3 percent year-on-year and rose nearly 2 percent compared with the previous quarter.
The number of times that Internet users clicked on those ads also jumped 16 percent over the same quarter a year ago, Google reported.
"Google had an excellent quarter," Eric Schmidt, Google's chief executive officer, said in a statement.
"Our core business grew very well, and our newer businesses -- particularly display and mobile -- continued to show significant momentum. Going forward, we remain committed to aggressive investment in both our people and our products as we pursue an innovation agenda," he added.
Google revealed that it added 1,526 employees in the most recent three months. The company's capital expenditures surged nearly three times than the year-ago period to 757 million dollars, the majority of which was spent on data centers, servers and networking equipment.
Source: Xinhua
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