Google sees 35% jump in revenue
20 July 2012
Google’s acquisition of Motorola has contributed to a 35% year-on-year jump in revenues to $12.21bn in the search engine giant’s Q2 financial results.
The revenue boost resulted in an 11% year-on-year increase in income to $2.78bn. The strong performance was mainly driven by a 21% increase in revenue from its core internet business, which generated $7.54bn in revenue.
Motorola Mobility Holdings’ assets and liabilities were included in the report as the $12.5bn acquisition of the mobile handset manufacturer completed in May. Motorola contributed $1.25bn of the overall quarterly revenue.
By region, revenues from outside of the US came to $5.96bn, making up 54% of its total revenue for the quarter, making the US still the company’s dominant market.
The Google network members’ websites contributed $2.98bn to the quarter’s revenues, making a year-on-year increase of 20%. The results also show that the bulk of Google’s revenues still come from advertising, with $10.52bn of it being generated this way.
Google chief executive Larry Page highlighted the company’s intentions to start building its own hardware in the report, including the Nexus 7 tablet that the company announced at its I/O conference.
The company’s Android operating system is also continuing to perform well and currently covers 50.9% of the US smartphone market according to Comscore.
David Hing, London