Google surprised with booming advertising business – derStandard.at

Google benefits from a thriving advertising business. The US Internet giant rejected on Thursday for the second fiscal quarter from a surprisingly strong increase in turnover of eleven percent to $ 17.73 billion. Actual net income increased 17 percent to $ 3.93 billion net or $ 6.99 per share excluding special items. Thus in six quarters, the Group exceeded the first time earnings expectations. Investors rewarded this: The share price rose 7.5 percent after-hours to

Numbers

The advertising business, in the last especially Facebook Google made competition continues around.. Reported to the number of clicks on online ads grew by 18 percent. The “cost per click” called the average price for the advertising content fell namely by eleven percent, which is probably likely to be due to smartphones and tablets to the increase in lower-margin advertising. However, this was more than offset by the higher number of clicks. In line with sales climbed in the business with ads also by eleven percent to $ 16.02 billion. In addition, we have made significant progress in mobile advertising in the current quarter that there achievable margin approaching now the desktop, it is part of the company.

However, Google is no longer far only in the ancestral Online -Search active. So make some revenue on the Play Store, which will be delivered based on Google’s Android operating system, in a growing part of the company’s turnover. Together with other partners working Google also to a self-propelled car, and run projects with hot air balloons, which are to provide in remote places of the earth up to the Internet. All this costs a lot at first, why must the core business run with advertising.

expenses

Therefore, the new Chief Financial Officer Ruth Porat also assumes the expenses, especially in the view. This remained stable in relation to sales within a year and to the previous quarter fell slightly. This shows that the stringent cost management Am working Porat, who recently came out of the US investment bank Morgan Stanley, where she was also responsible for Finance said. (Reuters / red, 17/07/2015)