Google revenue leaps 21 percent on strong Web searches
SAN FRANCISCO - Google Inc's (GOOG.O) revenue for its core Internet business rose 21 percent in the second quarter, as strength in Web search advertising offset falling ad rates.
Shares of Google were up about 3 percent at $611 in after-hours trading on Thursday.
Google, which recently acquired hardware maker Motorola Mobility, posted overall revenue of $12.2 billion for the quarter and net income of $2.79 billion, or $8.42 per share, on a consolidated basis.
"Search demand in the U.S. search was pretty solid, and despite economic challenges in Europe, I'm getting the sense that search demand was not too bad there," said Needham & Co analyst Kerry Rice.
Google, the world's No. 1 Web search engine, closed its $12.5 billion acquisition of Motorola in mid-May, giving it a foothold in the fiercely competitive smartphone hardware business, dominated by companies such as Apple Inc (AAPL.O) and Samsung (005930.KS).
Motorola reported an operating loss of $233 million in the second quarter, on revenue of $1.25 billion.
Google said revenue for its existing Internet business totaled $10.96 billion in the quarter, compared with $9 billion a year earlier.
The cost per click for Google's online search ads continued to decline in the second quarter, falling 16 percent year-on-year, while the overall number of clicks on its ads increased 42 percent.
Cost per click "was down more than I expected, but this could be a trough, since we did see a sequential uptick," Rice added. "We may have hit the bottom here." — Reuters
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