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Google reported $14.4bn (£9bn) in revenues for the fourth quarter of 2012 as the company announced its first ever $50bn year. The revenues comfortably beat analysts' expectations and were 36% higher than the same quarter last year but the firm also provided fresh evidence of how the shift to mobile is hitting the value of online advertising. | |
"We ended 2012 with a strong quarter," said Larry Page, Google's co-founder and CEO. "Revenues were up 36% year-on-year, and 8% quarter-on-quarter. And we hit $50bn in revenues for the first time – not a bad achievement in just a decade and a half." | |
Total advertising revenue improved 19%, compared with 25% growth a year ago. Google's own sites generated revenues of $8.64bn, or 67% of total Google revenues, in the fourth quarter of 2012, an 18% increase over 2011. Google's partner sites generated revenues of $3.44bn, or 27% of total revenues, in the quarter. This represents a 19% increase from the fourth quarter of 2011. | |
Google posted a quarterly profit of $2.89bn, up from $2.71bn a year earlier. Paid clicks increased 24% year on year and were up 9% from the last quarter. But this growth was tempered by a 6% fall in cost-per-click, the price paid by advertisers. Like other businesses dependent on online ads, including Facebook, Google is finding the value of its business eroded by the shift to mobile. | |
In the third quarter Google missed analysts' expectations by a wide margin, and its results were accidentally leaked hours early. The firm's share price tumbled as Google warned that a growing shift toward mobile searches could hit revenues. | In the third quarter Google missed analysts' expectations by a wide margin, and its results were accidentally leaked hours early. The firm's share price tumbled as Google warned that a growing shift toward mobile searches could hit revenues. |
Google's shares had wobbled ahead of this quarter's release. Last Friday, the company said analysts were not accounting properly for the sale of Motorola's set-top box division, bought as part of its $12.5bn merger with Motorola Mobility. |