Google has reported net income of $1.48bn for the second
quarter of 2009, an 18% increase compared with the same period the
year before.
Earnings of $5.36 a share was better than the forecast of $5.08
a share, and revenue rose 3% for the period at $5.52bn.
Although a modest increase, the gain is in sharp contrast to the
3% decline in revenue in the
first three months of the year compared with the last quarter
of 2008.
Chief executive Eric Schmidt said: "These results highlight the
enduring strength of our
business model and our responsible efforts to manage
expenses."
Analysts attributed the significant gains in net income despite
the small revenue gain and the economic downturn to
Google's internal cost reduction programme.
This has included some
staff cuts and a slowing down the pace of hiring new
employees.
Other cuts have been made in research, marketing and non-core
projects. Google has
cut datacentre costs through
improving efficiency and consolidation.