GOOGLE beat expectations once again last night with net profit up 36 per cent reaching $2.97bn (£1.2bn) in the three months to 30 September, beating analysts forecasts.
Consolidated revenues rose 12 per cent to $14.89bn (£9.21bn), excluding money handed over to partners.
The results buoyed Google’s share price eight per cent in after hours trading to reach an all-time high of $960, lifting the company to a market capitalisation of around $320bn.
Google’s advertising business remains the single largest source of revenue for the company, bringing in around 85 per cent of the firm’s total revenue. “We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device,” said Google chief executive Larry Page, who told analysts he will no longer be joining the company’s regular earnings conference call.
He did not give a reason, but earlier this year Page revealed that his voice cords are partially paralysed as the result of a rare medical condition.
Not all Google’s numbers were positive. Google’s cost-per-click – how much advertisers pay Google when consumers click on their ads – fell eight per cent on 2012’s figures, however this decline was offset by a 26 per cent growth in the number of clicks.
“That’s the key story, their ad volume growth is outpacing the decline in cost per clicks,” said JMP Securities analyst Ronald Josey.
Motorola Mobility, the mobile handset business that Google bought in May 2012 for $12.5bn, continued to make losses, which grew 24 per cent to $248m compared to the same time last year.