“Google Inc., owner of the world’s most popular Internet search engine, reported profit that topped analysts’ estimates as advertisers increased spending on mobile and video promotions,” Brian Womack reports for Bloomberg. “First-quarter profit, excluding some items, was $11.58 a share, Google said yesterday in a statement. Analysts had projected $10.68 per share, according to data compiled by Bloomberg. Net income increased 16 percent to $3.35 billion, or $9.94 a share.”
Womack reports, “Google is pushing beyond its roots as a desktop-based search business to enter new ad-driven markets, including smartphones, Web services and video, stepping up competition with Apple Inc. and Microsoft Corp. The company’s search and video businesses bolstered results with Google-owned sites generating $8.64 billion in revenue for the quarter, up 18 percent from a year earlier, according to Benjamin Schachter, an analyst at Macquarie Securities USA Inc.”
“The company benefited in the first quarter from a federal credit that helped reduce its tax rate and boost earnings, Patrick Pichette, chief financial officer, said yesterday on a conference call with analysts. Google had an effective tax rate of 8 percent in the first quarter, less than half the 18 percent of a year earlier, the company said,” Womack reports. “The average amount that advertisers paid each time a user clicks on a promotion decreased 4 percent, following a 6 percent decline in the previous three-month period. The total number of clicks advanced 20 percent, after a 24 percent gain in the fourth quarter. Analysts had predicted the cost per click would fall 2 percent, while the overall number would climb 20 percent, according to data compiled by Bloomberg.”
Read more in the full article here.