Google’s profit surges 46%

Source: Technology Digital

Date :19/10/2007 09:09:09

Web search leader Google Inc reported on Thursday a 46 percent rise in profit, topping analysts' expectations.

Revenue grew 57 percent to $4.23 billion compared with an average analyst forecast of $4.13 billion - comfortably outpacing expense growth.

Shares of Google inched into new record territory in extended trade after the results, with trading up to $641.95 from a regular session close of $639.62.

Net income rose to $1.07 billion, or $3.38 per diluted share, compared with the year-earlier quarter's $733.3 million, or $2.36 per diluted share.

Excluding one-time items, profit was $3.91 per share in the latest quarter, versus the Wall Street average target of $3.77.

The results show that Google is growing roughly twice as fast as the overall online advertising market, with its shares rising more than $100 in the last month.

Market growth

Google executives said several of its newer projects were doing well, including a deal to sell advertising on MySpace and a trial for customized television ads.

Over the past year, the company has worked to extend its reach beyond Web search advertising into a variety of new markets, including online video, television, radio and print advertising, including two new efforts with its YouTube subsidiary.

In recent weeks, it has stepped up its plans to sell ads on cell phones, with the company expected to announce an operating system for mobile phones soon.

Investors also expect that Google’s proposed $3.1 billion acquisition of internet advertising service DoubleClick - if approved by regulators - will help it gain share in the market for online display advertising.

October 19 2007

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