In This Bulletin

NEWS

Explore Brand Republic

Google's first-quarter profits rise 69% to $1bn

by Staff Brand Republic 20-Apr-07, 09:20

SAN FRANCISCO - Google has reported net profits of $1bn (£500m) in the first quarter of 2007, a 69% increase from the same quarter in 2006.

The search engine's gross revenue rose 63% to $3.66bn (£1.83bn) for the first quarter, which included traffic acquisition costs of $1.13bn paid to websites carrying its ads.

Revenues from the UK totalled $578m (£288m), which represents 16% of revenue in the first quarter of 2007, compared to 15% in the first quarter of 2006.

International revenues from outside the US totalled $1.71bn, representing 47% of total revenues.

The company's increased share of web search more than offset increased costs. Ad revenue generated from Google-owned sites reached $2.28bn with a 76% increase year-on-year.

Google extended its dominance into the display advertising market last week, when it bought DoubleClick for $3.1bn.

The company's partner sites generated revenues through Google's AdSense program of $1.35bn, representing a 45% year-on-year increase.

Eric Schmidt, CEO of Google, said: "We continued to expand our worldwide footprint, adding important new partners and growing our platform to increase our ability to deliver targeted and measurable ads."

Google's results come after Yahoo, owner of the most visited US website and number two in internet search, this week reported an 11% fall in first quarter profits to $142m.