Fri 19th of October 2012, filed under Internet News
Google suspended shares
Google halted trading after the accidental release of its Q3 earnings.
The prematurely published results showed that the search engine giant's earnings had fallen 20 per cent from last year. Before Google were able to halt trading, the plummet in profits caused Google's shares to go down by nine per cent, knocking $20bn (£12.45bn) off its value.
After trading resumed following the finalisation of the document, shares recovered slightly and were down by 8 per cent by the end of the day. After the market closed, Google chief executive Larry Page apologised to analysts: "I'm sorry for the scramble earlier today."
Pending Larry quote
The Google Q3 results were due to be released after the stock market closed. Instead, an unauthorised copy was published early accompanied by the phrase 'Pending Larry quote'.
A Google spokesperson has said: "Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorisation." As the unfinished quarterly release lacked the commentary Larry Page usually adds to financial figures, the search engine wasn't given an opportunity to explain its results.
Some of the key reasons have come to light, including a fall in 'cost per click', the amount advertisers pay Google when an advert is clicked on. As revenue fell by 15 per cent from last year, this suggests that Google faces a challenge as more people turn to mobile use and mobile advertising.
Natalie Booth, online marketing manager at theEword, said: "A growing number of people are browsing on their smartphones, meaning that more advertisers are concentrating on mobile. As mobile phone advertising rates are lower than for desktops, Google needs to find a way to boost its earnings in the mobile market.
Posted by Lauren Knowles