We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Google doubles profits

Strong UK business boosts coffers

Google's revenue grew by 70 percent and earnings almost doubled in its third quarter, as the company continued cashing in on its search-engine services through online adverts.

Google generated revenue of $2.69bn (about £1.4bn), compared with $1.58bn (£840m) in Q3 last year. Subtracting the commissions it pays to websites that carry its ads, Google had revenue of $1.87bn (£991m).

Meanwhile, net income came in at $733.4m (£390m), up from $381.2m (£203m).

"We had an excellent quarter in all respects, especially internationally," Eric Schmidt, Google's chief executive officer, said during a conference call. Business was particularly strong in the UK, Germany, the Netherlands, Spain, France, Canada, Australia, India and Brazil, executives said.

Schmidt said Google's revenue will continue to come from advertising, and search advertising in particular "for many, many years". However, he acknowledged Google must develop other sources of revenue, and pointed at some nascent ones that hold much promise, such as the company's enterprise unit, which sells search appliances to businesses. He also cited the new Google Checkout online transactions service as one that has "tremendous revenue potential".

Asked about potential copyright violation liabilities Google may inherit when it closes its acquisition of video-sharing site YouTube, Schmidt said Google strictly abides by copyright laws and its approach to YouTube will be no exception. The deal is expected to close this quarter.

He also said that Google expects to sign a final contract very soon with News Corp's MySpace for the advertising deal they announced in August. The companies have been operating so far under a "binding letter of agreement" for that deal, which calls for Google to be the exclusive provider of search functionality and search advertising to MySpace and other News Corp websites.

IDG UK Sites

How to watch the Windows 9 launch event: no live video stream so catch our Windows 9 launch live...

IDG UK Sites

Windows 9 and the death of the OS as a must-have product

IDG UK Sites

Video trends: 4K is here โ€“ HDR video, VR and 3D audio is coming

IDG UK Sites

Best iPhone 6, iPhone 6 Plus deals: iPhone 6, iPhone 6 Plus tariffs, contracts and prices UK