Google's Android Play Store has topped 50bn app downloads, paying out more to developers in the first six months of 2013 than in the whole of 2012, the company announced today. Despite the milestone, Mountain View has seen its share price fall by five percent after failing to match profit forecasts, as online advertising revenue was affected by mobile devices and hot weather.
The search giant recorded revenues of $14.1bn in the second quarter of 2013, $300m off targets set by analyst predictions in the previous quarter. Despite this, the company's profits increased by 16 percent, reaching $3.23bn.
Google's staple income, advertising, saw a six percent drop in terms of its cost per click (CPC), which is the amount of money Google receives from advertisers every time a user interacts with an ad. Google's chief financial officer, Patrick Pichette, explained to investors that while cost-per-click was indeed down, it was affected by the price of mobile advertising clicks. "Clearly, mobile has some effect. It's one of the many factors that are at work," he said.
Pichette also clarified that CPC wasn't the best indicator of the business' strength. "I just want to remind everybody that it's always kind of dangerous to just look at CPCs by themselves or just look at paid clicks by themselves but in fact it's a combination of the two that gives you the health of the business," he explained.
The weather also had a hand in less than stellar UK revenues. "The UK was negatively impacted by a warm spring which was also affected by foreign exchange prices," said Pichette.
Elsewhere in the business, chief executive Larry Page announced 900 million total Android device activations, with 1.5 million added daily. He also highlighted the fact that 50 billion apps have now been downloaded from the company's Play Store, an increase of two billion since May. "We already paid out more money to Android developers this year than in the whole of 2012," Page said.
Google is also expected to launch the next edition of its popular Nexus 7 compact tablet next week, with an event scheduled for 24 July.
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