To print: Click here or Select File and then Print from your browser's menu

This story was printed from silicon.com, located at http://www.silicon.com/

Story URL: http://networks.silicon.com/webwatch/0,39024667,39163400,00.htm

Google rakes it in as paid search booms
"Business is very, very good... "

By Elinor Mills

Published: Friday 20 October 2006

Google's third-quarter profit nearly doubled from a year ago as sales of keyword-related advertising continued to grow for the world's top web search engine.

Google chief executive Eric Schmidt said in a conference call after the results were released: "Business is very, very good here at Google. We had an excellent quarter in all respects, especially in international."

During the quarter, Google saw strong user growth and improvements in search quality and ad sales, Schmidt said.

The news sent Google's stock up shares rising nearly eight per cent to $459.51 in after-hours trade, after closing at $426.06. The profits announcement was made right after the market closed.

Net profits for the quarter ended 30 September were $733m, or $2.36 per share, including one-time items such as stock-based compensation, compared with $381.2m, or $1.32 per share. Excluding those items, profits were $812m, or $2.62 per share.

Total revenue for the third quarter rose 70 per cent to $2.69bn, compared to $1.58bn a year ago. Excluding traffic acquisition costs, or commissions paid to content partners, revenue was $1.87bn.

Analysts polled by Thomson Financial were expecting Google to post profits per share of $2.42 excluding items, and revenue of $1.81bn excluding traffic acquisition costs.

Mark Mahaney, an analyst at Citigroup, praised Google's results, saying they were "extremely strong, indicating a still robust search market, market share gains, and excellent execution".

Elinor Mills writes for CNET News.com