31st January 2014
Technology giant Google has unveiled profits totalling $3.38bn for the final three months of 2013, a 17% rise from the same period 12 months earlier writes Philip Scott.
Paid clicks on the site, which include those related to ads served on Google and the sites of its network members, increased 31% over the last three months of 2012 and by some 13% over the third quarter of 2013.
But despite the hike in clicks, the average cost-per-click for the period loosened by 11%.
On a consolidated basis, Google Inc. revenues for the quarter ended 31 December 2013 were $16.86bn, an increase of 17% compared to the fourth quarter of 2012.
In a statement Larry Page, CEO of the internet search engine said: “We ended 2013 with another great quarter of momentum and growth. Google’s standalone revenue was up 22% year on year, at $15.7bn.
“We made great progress across a wide range of product improvements and business goals. I’m also very excited about improving people’s lives even more with continued hard work on our user experiences.”
Jonathan Jackson, head of equities at brokers Killik & Co. says: ” Google continues to invest to add to its capabilities. It has also demonstrated its ability to advance take-up of its software solutions by co-developing hardware, with the release of Google Nexus branded products.
“We continue to like its long-term investment case and believe Google will be one of the long-term winners out of a move to the mobile internet. Adjusting for its $58.7bn of cash, the group currently trades on 16.8x consensus 2015 earnings, an attractive valuation given its position as the premier internet stock.”
The group however surprised the market this week when it offloaded US mobile firm Motorola Mobility to Chinese computer group Lenovo for $2.91bn. Revenues for the division were $1.24bn, down from $1.51bn, in the fourth quarter of 2012
Despite the market update, the group’s shares have dropped by 2% over the past week but have still enjoyed a 51% surge over the past 12 months.
Google also announced that its board of directors has approved a distribution of shares of the Class C capital stock as a dividend to stockholders with a dividend record date of March 27, 2014 and a dividend payment date of April 2, 2014.