Google Q2 net income up 11% on rising ad revenue

| Updated on: Jul 20, 2012

Internet giant Google Inc has reported an over 11 per cent rise in net income at $2.79 billion for the April-June quarter of this year, driven by rising online advertising revenue.

Net income for the second quarter of 2011 stood at $2.51 billion.

Consolidated revenues stood at $12.21 billion registering an increase of 35 per cent.

Advertising revenue

The robust revenue growth came in mainly from rising advertising revenues, which stood at $10.96 billion or 90 per cent of consolidated revenues in the second quarter of 2012, the company said in a statement.

Google’s advertising revenues increased 21 per cent year-on-year to $10.96 billion from $9.03 billion in the year-ago period.

“Google standalone had a strong quarter with 21 per cent 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,” Google CEO Mr Larry Page said.

Mr Page added that “this quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”

Motorola acquisition

Google Inc completed its acquisition of Motorola Mobility Holdings Inc on May 22 this year.

The assets and liabilities as well as the operating results of Motorola were included in Google Inc’s consolidated balance sheet as of June 30, 2012.

In the second quarter, Motorola revenues stood at $1.25 billion or 10 per cent of consolidated revenues in the second quarter of 2012.

Mr Page reportedly did not take part in the conference call as he was still recovering from a throat problem that left him temporarily unable to speak.

Employee strength

On a worldwide basis, Google said it employed 54,604 full-time employees (including Motorola) as of June 30, 2012, compared with 33,077 full-time employees as of March 31, 2012.

Net cash provided by operating activities in the second quarter of 2012 totalled $4.25 billion compared with $3.52 billion in the second quarter of 2011.

In the second quarter of 2012, capital expenditures were $774 million, the majority of which was related to IT infrastructure investments, including data centres, servers, and networking equipment.

“We expect to continue to make significant capital expenditures,” the company said.

Published on July 20, 2012

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