Google revenues up 79pc

21 Apr 2006

Internet search giant Google, which employs 700 people in Ireland, has reported a 79pc increase in revenues to US$2.25bn for the first quarter, compared with revenues of US$1.26bn a year ago. The company attributed the growth to revenues from Google-owned sites and online advertising.

The company reported profits of US$592m for the quarter, compared with US$372m a year ago.

Google-owned websites generated revenues of US$1.3bn, or 58pc of total revenues. This represents a 97pc increase over the first quarter 2005 revenues of US$657m.

Google’s AdSense partner sites generated revenues of US$928m, or 41pc of total revenues. This was up 59pc over network revenues of US$584m generated at the same time last year.

International revenues from outside the US contributed to 42pc of Google’s total revenues, compared with 39pc last year. Foreign exchange rates interfered with revenues and the company admitted that had foreign exchange rates remained constant all year long international revenues would have been US$65m higher.

Google CEO Eric Schmidt described the quarter as exceptional. He said: “We are driving this growth through investments in our infrastructure and our people, product innovations that attract new users and relationships with advertisers and partners around the world.

“The strength of our business model gives us the opportunity to invest in our business, allowing us to maintain and grow our market leadership,” Schmidt said.

By John Kennedy