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Technology / Data Centre

Google Q3 revenues up 7% to $5.54 billion

Google has reported revenues of $5.94 billion in the third quarter of 2009, an increase of 7% compared to $5.54 billion in the same period last year, showing signs of recovery in the internet advertising market.

The Mountain View, California-based company posted an operating income of $2.07 billion, or 35% of revenues, compared to an operating income of $1.65 billion, or 30% of revenues in the same period a year ago.

Net income for the quarter ended September 30, 2009, rose 27% to $1.64 billion from $1.29 billion in the corresponding period last year. The earnings per share was $5.13 on 320m diluted shares outstanding, compared to $4.06 in the third quarter of 2008 on 318m diluted shares outstanding.

During the quarter, the company incurred a charge of $318m related to stock-based compensation (SBC), while the tax benefit related to SBC was $73m.

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Google-owned sites generated revenues of $3.96 billion, an increase of 8% compared to revenues of $3.67 billion in the same period last year. Google partner sites revenues through AdSense rose 7% to $1.8 billion from $1.68 billion.

Geographically, revenues from outside of the US totalled $3.14 billion, representing 53% of total revenues, while revenues from the UK totalled $765m, representing 13% of total revenues in the third quarter of 2009. The company recognised a benefit of $39m to revenues through foreign exchange risk management program.

Eric Schmidt, CEO of Google, said: Google had a strong quarter – we saw 7% year-over-year revenue growth despite the tough economic conditions. While there is a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future.

This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

CBR Online legacy content.