Google is resisting the economic crisis, beating Wall Street expectations in its latest financial results.
The company has presented revenues of $ 5.7 billion (about € 4.44 billion) for the last quarter of 2008, representing an increase of 18% over the previous year, but an increase of only 3% over to the figures of the previous quarter.
Profits fell sharply to $ 382 million (about € 297.5 million), compared to $ 1.2 billion (about € 934 million) a year ago; however, this is largely due to investments in internet rival AOL and wireless broadband provider Clearwire.
Google Chairman Eric Schmidt noted that the company has performed well given dire circumstances in the advertising industry, but acknowledged that he cannot predict whether things will get easier in the future.
"Google performed well in the fourth quarter, despite an increasingly difficult economic environment," he said. "It is not clear how long the global crisis will last, but our focus remains long-term."
In recent years, Google has become more reliant on money generated from advertising on its own Web sites, rather than through its ad networks; and that pattern continues today.
Google-owned sites generated $ 3.8 billion (€ 2,958.5 million) of global revenue for the quarter, representing 67% of their revenue, a significant increase compared to the 45% share just a year ago. year.
Although this means that the company's popularly effective advertising network is less powerful today, it may have helped insulate the company from certain aspects of the financial crisis.
Google has also become more dependent on its international business, with the rest of the world currently responsible for 50% of its revenue. And it states that its income would have been 334 million dollars (260 million euros) more, especially in the United Kingdom, had it not been for the currency falls.
The figures have been well received by Wall Street analysts, who had expected worse results; and by investors, who saw Google's shares boosted up to 2%.
Source: Guardian Business