News Column

Google reports 17pc rise in quarterly revenues

January 31, 2014

WASHINGTON Web search giant Google Inc. Thursday reported consolidated revenues of $16.86 billion for the quarter ended December 31, 2013 , an increase of 17% compared to the fourth quarter of 2012, while for the whole year, it reported $15.7 billion standalone revenue, up 22% year on year. The boost in revenue was the result of higher advertisement revenue. The tidings came a day after Google reached an agreement to offload Motorola to Chinese technology giant Lenovo for $2.91 billion , after a lackluster two-year effort to turn around the smartphone maker it bought for $12.5 billion . Beating Wall Street estimates on quarterly revenue, CEO Larry Page said, "We ended 2013 with another great quarter of momentum and growth. Google's standalone revenue was up 22% year on year, at $15.7 billion . We made great progress across a wide range of product improvements and business goals." On a conference call with analysts, Nikesh Arora , chief business officer, said performance advertising remains the mainstay of the company and he's optimistic that Google can hit all screens. "Performance advertising continues to be a main stay of our core business. We're seeing good growth as driven primarily by increased search activity across all screens, as driven by new measurement features and more sophisticated market ears lining their search and display advertising strategies," said Arora. He also added that Google's enterprise business continues to grow. CFO Patrick Pichette said that Google is continuing to invest in data centers. "Most of our capital expenditures right now are really driven by data center construction and machines that are actually driving both the core businesses of Google and (cloud services like Compute and App Engine)." Interestingly, Google -owned sites accounted for $10.55 billion or 67 percent of the total quarterly revenue of $16.86 billion . Looking in comparison to the fourth-quarter of 2012 and an increase -- this time 22 percent was seen with revenues of $8.64 billion . Other revenue related numbers include $3.52 billion (23 percent) for Google's partner sites, which leaves the other category sitting with $1.65 billion , or 10 percent. Paid clicks were up 31% year-over-year, but decreased 2% quarter-over-quarter. Average cost-per-click decreased 11% year-over-year, and 2% quarter-over-quarter. Google says it is continuing to invest in three major areas of focus: core ads (search/display), businesses demonstrating high consumer success ( YouTube , Android/Play, Chrome) and new businesses where it's investing to drive adoption and innovation (social, commerce, enterprise). Google says its infrastructure continues to be a "key strategic area of investment." The company took the opportunity to announce that its board has approved a distribution of shares of the Class C capital stock as a dividend to stockholders. This will be paid on April 2nd . Some of the other number highlights include a GAAP operating income of $3.92 billion , GAAP net income of $3.38 billion and non-GAAP net income of $4.10 billion . The report cites Motorola Mobile segment revenues of $1.24 billion , which was down from the fourth quarter in 2012. For comparison, Q4 2012 saw $1.51 billion . More to the point for Motorola, that meant a loss of $384 million for Google . Again in comparison, the $384 million loss increased from the previous quarter, which was sitting at just under $250 million . With losses building with Motorola, maybe Google made the smartest decision by parting ways.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Big News Network (United Arab Emirates)


Story Tools