Google Revenues and Profits Grow Despite Declining Ad Rates
Google shares have soared to an all time high as it posted revenues and profits that beat analyst expectations, even as revenue per advert actually declined slightly.
The company reported consolidated revenues of US$14.9 billion for the quarter ended September 30, 2013, an increase of 12% compared to the third quarter of 2012.
The company was also boosted by increased revenues from overseas, which now represent 55% of the total, up from 53% a year ago.
Motorola Mobile revenues fell to US$1.18 billion, compared to US$1.78 billion in the third quarter of 2012. It also posted an operating loss of US$248 million.
Operating income in the third quarter of 2013 was $3.44 billion, or 23% of revenues. This compares to operating income of $2.74 billion, or 21% of revenues a year ago.
Net profit rose to $2.97 billion from US$2.18 billion a year ago.
Google however faces a challenge from the rise of mobile devices which traditionally generate far lower advertising rates than desktop based adverts. The move also impacts on publishers (such as cellular-news).
The company saw net revenues per click on adverts decline by 8 percent during the quarter, although that was offset by rising volumes across more devices.
In the company's mobile division, it was revealed that 1.5 million Android smartphones are being activated every day now. The company also generates revenue from mobile apps sold by developers through its Google Play app store.