Category: Google's 3Q record profit, online-advertising sales soar
Google's profit soared 92 percent in the third quarter
Google's profit soared 92 percent in the third quarter as the Mountain View Internet juggernaut grabbed an even larger share of the growing online advertising market.
Google, joining this week's tech earnings announcements, reported its results just after the stock market closed this afternoon. The company said its net income was $733.4 million, or $2.36 a share, up from $381.2 million, or $1.32 a share, in the third quarter of 2005.
Revenue jumped 70 percent to $2.69 billion, pretty much all of it from online ad sales. Google said it passed on $825 million of that to its advertising partners. Excluding those traffic acquisition costs, Google said revenue was $1.86 billion, up from
“Our third-quarter results are a testament to the strength of our network of advertisers and partners, as well as our continuing focus on users,'' Google Chief Executive Eric Schmidt crowed in a statement accompanying the report.
Excluding stock-compensation costs, Google said it earned $2.62 a share. On that basis, analysts surveyed by Thomson Financial had expected earnings of $2.42 a share on revenue after traffic acquisition costs of $1.81 billion.
Google's latest result contrasted with earnings earlier this week from Sunnyvale rival Yahoo, which is suffering from a delay in its new online advertising platform.
Investors today were thrilled with Google's report, and the company's shares were climbing in after-hours trading.
Google, the Nasdaq was up only slightly today, rising 3.79, or 0.2 percent, to 2,340.94. The Nasdaq remains nowhere near its closing high: It traded well above 5,000 at the peak of the tech-stock boom.
Source: Online News
