Google rakes in profits from online adverts: Q1 earnings |
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Mon, 25 Apr 2005 01:00
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Internet search engine Google has really cashed in on the rapid growth in search advertising. First quarter earnings have recorded the highest net income of $369.2m (£282.7m), or $1.29 a share, outstripping Wall Street’s best expectations of 92 cents a share.
The Q1 earnings this year are six times that of the corresponding quarter last year: $64m or 24 cents a share.
| The numbers prove beyond doubt that Google is the most popular if not one of the popular search engines. Google share prices shot up by over $5 at closing bell and were trading at $214 a share, double its August float price of $85 a share.
Revenue from online advertising stood out prominently among the factors which gave earnings that six-fold surge. Search adverts are those that get triggered when you type certain key words into Google’s keywords’ bar. The results cache includes adverts that display a link to a site. Every time one of these adverts is clicked on, Google gets paid.
A spokesman for Google said that the quarter had indeed been a good one for Google. The company had been prompt in taking advantage of the rapid growth in Internet advertising. He also said that his company has always tried to provide value-added services to the users of the search engine which is why its popularity has also grown correspondingly.
Total revenue had also doubled from last year’s $651.6m to $1.26bn (£960m).
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