Google profits fail to meet forecasts

Source: Stock Market Digital

Date :20/07/2007 08:57:12

Google’s profits jumped 28 percent to $925 million (£451 million) over the past three months, but the figure was behind analysts’ growth expectations.

Compared to the same period in 2006, when the web search giant made a $721.1 million profit, the second-quarter performance was strong.

But the latest figure represented a fall from the first three months of the year, when Google made $1 billion in profit.

Nevertheless, Google said it was pleased with what it said was "solid growth" - particularly outside the US, with sales from outside its home market now accounting for 48 percent of its total business.

Overall sales were up 58 percent to $3.87 billion compared to the same period last year, representing a 6 percent increase on the first quarter of the year.

"Our performance once again demonstrates the strength of our core search and ads business," said chief executive Eric Schmidt.

Google shares fell marginally before the results were announced and again, more sharply, in after-hours trading on concerns about rising costs.

July 20 2007