Google made sales in the UK worth $1.15bn in the first quarter of its 2012 financial year, which represented 11% of total revenues, the same as in that period a year ago.
Globally, the company reported revenue of $10.65bn for the quarter ended March 31, 2012, an increase of 24% compared to the first quarter of 2011.
Due to a tax loophole, according to reports including one from Bloomberg, Google only pays 2.4% tax in the UK. Bloomberg reported that the search engine giant cut its taxes by $3.1bn in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda.
In the first quarter of 2012 Google reported it spent $1.28bn on datacentre operational expenses, along with intangible assets, content acquisition costs, and credit card processing, representing 12% of revenues, up 10% from $897m in the first quarter of 2011.
Larry Page, CEO of Google, said: “We saw tremendous momentum from the big bets we’ve made in products like Android, Chrome and YouTube. We are still at the very early stages of what technology can do to improve peoples' lives and we have enormous opportunities ahead. It is a very exciting time to be at Google.”
In a letter to shareholders, Page and co-founder Sergey Brin discussed how they planned to keep Google independent of external influence.
“We have protected Google from outside pressures and the temptation to sacrifice future opportunities to meet short-term demands. Long-term product investments, like Chrome and YouTube, which now enjoy phenomenal usage, were made with a significant degree of independence,” the pair wrote.