Google profits rise beyond expectation
Google announces successful third quarter
Google has announced that the public introduction of Google+ and the continued success of its Android devices and mobile advertising has resulted in a profitable third quarter.
Google has beaten Wall Street expectations by achieving a 26 percent rise in profits over the past three months. The company has taken a net income of $2.73 billion (£1.73 billion), which is significantly higher than the $2.17 billion (£1.38 billion) from the previous year. The CEO of Google, Larry Page, stated: “We had a great quarter […] Revenue was up 33% year on year and our quarterly revenue was just short of $10 billion.”
Google and the reasons for its success
Larry Page suggested that the public unveiling of Google+ is one of the reasons for the company’s successful quarter. He said: “Google+ is now open to everyone and we just passed the 40 million user mark. People are flocking into Google+ at an incredible rate and we are just getting started!” 10 million people began using Google+ in the trial period, and over 40 million users signed up following its public unveiling in September.
Google Android has also contributed to this peak in quarterly profits. Page stated that mobile advertising and the increasing sales of Google Android devices now generates revenue of $2.5 billion (£1.58 billion) each year. Dan Nolan, general manager at theEword, stated: “The development of new devices or software helps to create a buzz around a business. The extension of the Google brand has enabled the company to increase its net profit as people want to try out its newly-released services.”