News

Google fails to meet estimates under mobile pressure

Warwick Ashford

Google has reported revenues of $14.11bn for the quarter ended 30 June 2013, an increase of 19% compared with the same period the year before, but below estimates of $14.4bn.

Analysts said the business has come under pressure from the rapid increase in mobile users because advertising earnings are higher for PC-based clicks.

42898_Google.jpg

Earnings per share were $9.54, more than a dollar lower than most analysts had expected, while net income was $3.23bn, a 16% increase on the second quarter of 2012.

Google CEO Larry Page noted that it is a very different environment today compared with the single operating system and single device when Google started.

But he said the shift from one screen to multiple screens and mobility creates tremendous opportunity for Google.

“With more devices, more information and more activity online than ever, the potential to improve people’s lives even more is immense,” Page said.

Google-owned sites generated revenues of $8.87bn – 68% of total Google revenues – in the second quarter of 2013. This represents an 18% increase over the same period the year before.

Google’s partner sites generated revenues of $3.19bn, up 7% increase from the second quarter of 2012.

Revenues from outside the US were $7.2bn, representing 55% of total Google revenues in the second quarter of 2013, compared with 55% in the first quarter of 2013 and 54% in the second quarter of 2012.

Google revenues from the UK totaled $1.32bn, representing 10% of Google revenues in the second quarter of 2013, compared with 11% in the second quarter of 2012.

Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of network members, increased 23% over the second quarter of 2012 and 4% over the first quarter of 2013.

Traffic acquisition costs (TAC), the portion of revenues shared with Google’s partners, increased to $3bn in the second quarter of 2013, compared with $2.6bn in the second quarter of 2012.

TAC as a percentage of advertising revenues was 25% in the second quarter of 2013, compared with 25% in the second quarter of 2012.

Motorola Mobile revenues were $998m, or 7% of consolidated revenues in the second quarter of 2013, compared with $843m, or 7% of consolidated revenues in the second quarter of 2012.


Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy