Google posted huge profits of $2.97bn for the third quarter of 2013 after revenues of $14.9bn, an increase of 12 percent compared with the same period last year. However, the firm’s Motorola business unit continues to lose money, with revenues down by $600m.
The bulk of the revenues came from Google’s own sites, which generated advertising of $9.39bn, while partner sites generated $3.15bn. Other revenues, such as from hardware sales, generated $1.23bn. The UK raised $1.39bn towards Google’s bottom line, although this was down slightly on Q3 2012.
Google chief executive Larry Page said the results were another indication the firm’s strategies were paying off. “We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device,” he said
News of the strong results has already massively boosted the firm’s pre-market share price, which rose by $70 to $959 in premarket trading, a record for the company.
However, while the results are impressive, there were some warning signs in the numbers. The average cost-per-click for paid-for advertising went down by eight percent compared with the third quarter of 2012 and down four percent on the second period of 2013.
This is likely due to a switch of many advertisers to mobile advertising, which commands a lower price-per-click, but mobile is seen as a vital future platform for all major internet firms to generate more income. Page confirmed that YouTube is one area where the firm is seeing huge mobile growth.
"Almost 40 percent of YouTube's traffic now comes from mobile, up from six percent two years ago," he said.
Motorola's performance will also have disappointed Google, though, after it posted revenues of $1.18bn, down from $1.78bn in the second quarter of 2012. It posted an operating loss of $248m, an increase on the $192m lost in Q3 2012.
However, despite this Google’s financial position is very strong, with a cash balance of $56bn. It also noted that it now employees 46,421 full-time employees, split between 42,162 in Google and 4,259 in Motorola, as of 30 September 2013.
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