Google posted healthy revenues of $12.21bn for the quarter ended June 30 up 26% from 2011’s £9bn. This is distorted somewhat by the purchase of Motorola Mobility, which accounted for $1.25bn of the company’s revenues for the quarter.
Subtracting Motorola, the company’s revenues were still up 18% – which includes its lucrative advertising businesses.
Google revenues from the United Kingdom totaled $1.18 billion, representing 11% of Google revenues in the second quarter of 2012, compared to 11% in the second quarter of 2011.
In the second quarter of 2012, Traffic Acquisition Costs (TAC) totaled $2.60 billion, or 25% of advertising revenues. TAC is the measure of payments made by Google to affiliates that direct consumer and business traffic to their websites. It is a good measure of whether traffic is becoming more expensive for the company, and affecting advertising revenue (see graph).
Google’s Traffic Acquisition Costs (TAC) vs ad revenue
The company does not break out its various divisions, such as Youtube and Google Android, its smartphone OS, but throws these into the mix as ad revenue.
Google’s overall net income was $2.79bn, up a healthy 10% from $2.51bn this time last year.
"Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus 7 tablet, which has received rave reviews," said Larry Page, CEO of Google.
The company has also launched Google Drive this month, and announced Google Android 4.1 Jellybean and Project Glass at its Google I/O event.
The company remains healthy cash-wise totalling $4.25bn net, compared to $3.52 billion in the second quarter of 2011.
Google also had $774 million capex, the majority of which was related to IT infrastructure investments, including data centers, servers, and networking equipment.
As a result of the Motorola acquisition, the company now has 54,604 full-time employees worldwide (34,311 in Google business and 20,293 in Motorola business), compared to 33,077 full-time employees as of March 31, 2012.
Google’s shareprice rose 2% on the news, to $604.70 (at the time of print).
