Google's pre-tax profits surge 42% to $1.5bn

Google has recorded a 41.6% rise in third-quarter pre-tax profits to $1.47bn (£719.8m), surpassing industry expectations once more.

Revenues climbed 57% to $4.43bn, and Google's share price hit $642.20 yesterday after breaking through the $600 mark for the first time on October 9. The company is currently valued at 49 times earnings.

Eric Schmidt, co-founder of Google, said: "[We are] very pleased with such strong results in what is seasonally one of our weaker quarters. It is obvious to us that our model continues to work very well.

"Our efforts to offer more products and services in international markets, as well as effectively grow our technology infrastructure and add to our deep talent base during the quarter, helped to deliver growth."

However, the company warned that forthcoming results may not be as high as previous ones, because it aims to invest in key areas of its business in the next 12 months.

During its third quarter, Google increased its staff headcount substantially. It hired 2,130 employees to bring its total global workforce to 15,916. Around 1,000 of the new employees are understood to be recent college graduates and people who joined following Google's acquisition of email management company Postini.

Last month, Google revealed plans to increase its European workforce "by several thousand" in the form of software engineers as part of the formation of a European-based research and development team.

It acquired mobile networking service Jaiku for an undisclosed sum earlier this month as part of its expansion into the mobile messaging market, having already announced plans in the US to sell ads on mobile and unveil its own operating system for mobiles soon.

print this article

Return to marketing news headlines
View Marketing News Archive

Share with: