Google announces rise in quarterly profit

| July 17, 2009 | 0 Comments

US internet search company Google has exceeded market expectations by reporting strong second quarterly results, despite the economic turmoil.

The company reported profit of $1.4 billion (£851 million) compared with $1.25 billion in the same quarter a year ago.

Meanwhile, revenue rose 3% for the period at $5.52 billion with 53% from outside the US.

Analysts reacted well to the results with Sameet Sinha of JMP Securities commenting: “The numbers are good. Revenue was in line with expectations, and strong operating efficiencies were brought about by the new chief executive.”

“It definitely shows that Google is a best-of-breed company for online advertising, and it’s a must buy.”

Google’s chief executive, Eric Schmidt, said: “These results highlight the enduring strength of our business model and our responsible efforts to manage expenses.”

Technology stocks in the US have performed well this week after chipmaker, Intel, exceeded analysts expectations, while computer giant IBM reported that second-quarter profit was up by 12% due to a better margin performance.

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