Google has reported revenues of US$7.2bn for the third quarter, up 23pc on last year and 7pc on Q2. The company, which has US$33bn in cash on hand, made a profit of USUS$2bn for the third quarter.
“Google had an excellent quarter,” said Eric Schmidt, CEO of Google. “Our core business grew very well, and our newer businesses – particularly display and mobile – continued to show significant momentum. Going forward, we remain committed to aggressive investment in both our people and our products as we pursue an innovation agenda.”
For the first time, Google gave a glimpse of just how financially divisions like display and YouTube were actually doing.
Senior vice-president of product management Jonathan Rosenberg said Google’s annualised run-rate for display ad revenues is approaching US$2.5bn. YouTube is monetising 2 billion views per week, up 50pc on last year.
Google’s mobile business will have achieved an annualised run-rate of US$1bn this year, driven by the success of Android, which is now in close to 16pc of all smartphones worldwide after just one year and Google’s acquisition of DoubleClick.
In the third quarter of 2010, TAC (traffic acquisition costs) totalled US$1.81bn, or 26pc of advertising revenues.
Operating income in the third quarter of 2010 was US$2.55bn, or 35pc of revenues, compared with US$2bn last year. Earnings per share in the third quarter of 2010 was US$6.72 on 322 million diluted shares outstanding, compared to US$5.13 last year.
Google-owned sites generated revenues of US$4.83bn, or 67pc of total revenues, in the third quarter of 2010. This represents a 22pc increase over third-quarter 2009 revenues of US$3.96bn.
Google’s partner sites generated revenues, through AdSense programs, of US$2.20bn, or 30pc of total revenues, in the third quarter of 2010. This represents a 22pc increase from third quarter 2009 network revenues of US$1.80bn.
Revenues from outside of the US totalled US$3.77bn, representing 52pc of total revenues in the third quarter of 2010, compared to 52pc in the second quarter of 2010 and 53pc in the third quarter of 2009.
Revenues from the United Kingdom totalled US$840m, representing 12pc of revenues in the third quarter of 2010, compared to 13pc in the third quarter of 2009.