Mobile ads boost Google’s Q1 results

financial results

Mobile ads boost Google’s Q1 results

Warwick Ashford

Online revenues have helped boost Google's net profit to $3.35bn in the first three months of the year, up 16% from the same period in 2012.

Google reported growing income from online advertising, which helped boost overall revenues to nearly $14bn for the quarter, up 31% compared with the same period a year ago.

Operating income was $3.48bn, up 2% on the previous year, and net income was $3.35bn, an increase of 16%.

Analysts said the results indicate that Google is building confidence with advertisers even though the average price per advertisement has fallen by 6% in the past year due to competition with Facebook.

The amount paid per advert is still declining, but at a slower rate than last year, according to the BBC. Latest figures indicate the decline is currently around only 4%.

The growing internet revenues also indicate that Google is coping well with the transition from PCs to smartphones, tablets and other mobile devices.

Although Google’s revenue of $11bn, less advertising commissions, was about $33m below analyst estimates, the company’s share price increased by 0.5% to $770 in extended trading after the financial results were released.

Google dominates the mobile search market, commanding 93% of US mobile search advertising spend, according to eMarketer.

Facebook is second, followed by online music service Pandora and microblogging service Twitter. EMarketer expects US mobile ad spending to grow 77% this year to $7.29bn, according to the Guardian.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy