Google Profits Up On Q3

Search engine and online media giant Google has today announced a substantial rise in profit figures for the third quarter, exceeding even the most ambitious of analyst forecasts for performance over the period.

The company today announced an increase in profits of 46% over the three months ending September, with net profits before tax of $1.07 billion from just $773 million a year before, reflecting the extent of growth in the business that virtually drives the Internet over the last three months, which it attributes to ongoing strength in traffic and advertising spend.

The news comes off the back of poorer than forecast results over the second quarter, and amidst news that Yahoo, its closest competitor, reported a fall in profits over the same period despite an increase in gross revenues from its search business.

This week also saw the Google share price skyrocket beyond the $600 mark in light of the anticipated improved results, which saw core revenues up to over $3 billion for the period. Furthermore share prices are to continue to rise as analysts build up to likely impressive year end figures to be released at the end of the next quarter.

Google generate their revenue by selling advertising space on their search engines and related media holdings. Through their pay per click programme AdWords, advertisers of all sizes can engage in targeted, cost effective advertising under any keyword term paying only for each customer click on the ad.

Additionally its AdSense programme, which encourages independent web publishers to display Google Ads on a revenue share basis accounts for a substantial part of the company’s revenue, allowing much wider distribution to advertisers.

Meanwhile Google continues to gain ground on its rival search engines, firmly in place as the world’s largest search engine by some margin.

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