Google eyes big leap in profits

Search engine giant Google has highlighted the success of its emerging businesses after beating analysts' forecasts with a 32 per cent jump in profits.
By The Newsroom
Published 16th Oct 2010, 00:08 BST

The tech giant posted net income of 2.2 billion US dollars (1.4bn) after revenues rose 23 per cent to 7.3 billion US dollars (4.6bn) in the third quarter of the year.

Google said its core business grew very well, while its newer businesses continued to show significant momentum.

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Text links placed above or alongside search results are still Google's main source of revenues, but the company has also invested billions on image-based display adverts, as well as ads inside web videos and mobile phones.

The company recently paid 3.2 billion US dollars (2bn) for DoubleClick, a display ad network, and 681 million US dollars (425m) for mobile-ad firm AdMob.

Google said sales of its display ads, which include those on YouTube, were on a pace that would translate to revenues of 2.5 billion US dollars (1.6bn) annually.

Its mobile advertising businesses are set to bring in one billion dollars a year (625m), the company added.

The California-based firm recruited 1,500 new staff in the quarter, meaning it has taken on 3,500 new employees so far this year.

Related topics:GoogleCaliforniaYouTube