Google earnings better-than-expected $2.2B
Shares rise 9% after hours
Last Updated: Thursday, October 14, 2010 | 5:13 PM ET
CBC News
Internet giant Google Inc. reported better-than-expected third-quarter earnings of $2.2 billion US, or $6.72 a share, Thursday on revenue of $5.5 billion, after subtracting commissions paid to its ad partners.
That was up from the previous quarter, when it earned $1.6 billion, or $5.13 per share.
Google's third quarter earnings surpassed expectations Thursday. (Paul Sakuma/Associated Press) Analysts expected profits of $6.69 per share, according to Thomson Reuters.
Investors sent shares of Google jumping more than nine per cent, to $590.60, in extended trading after the release of results.
Google managed to increase profits despite adding 1,500 workers in the quarter and spending more than four times as much on data centres and other equipment compared with a year ago.
The company said its average cost per click rose three per cent from a year ago, meaning companies paid more to place ads. People clicked on ads 16 per cent more than they did in the same period last year.
"Our core business grew very well, and our newer businesses —-particularly display and mobile — continued to show significant momentum," said CEO Eric Schmidt in a statement.
"Going forward, we remain committed to aggressive investment in both our people and our products as we pursue an innovation agenda."
The profit report came two days after Google and partners announced they would invest in a proposed $5-billion network of underwater transmission lines that could bring power from future offshore wind farms to customers along the East Coast.
The project, called the Atlantic Wind Connection, would run electrical lines as far as 32 kilometres out to sea between Virginia to New Jersey.
The initial phase of the project would be capable of delivering 2,000 megawatts of wind energy — enough to power about 500,000 homes.
With files from The Associated Press
