Google profits plunges 5 percent YOY, in Q3

Google profits plungesLondon, Oct 14 : Tech titan Google has reported profits of 2.8 billion dollars, for the third quarter, which is down by 5 percent year over year.

The search engine giant also missed analyst expectations for revenue, which increased by 20% to $16.52bn for the period, which was for the three months ending on 30 September 2014.

Google chief financial officer Patrick Pichette, in a statement accompanying the earnings statement, said that they continue to be excited about the growth in our advertising and emerging businesses, The BBC reported.

Google's profits were also hit by increasing costs of real estate, such as data centres, and hardware inventory costs, which increased by 37 percent to 3.35bn dollars from the same period a year earlier.

Although Google makes the majority of its revenue from the advertising it places on its search site and others, the technology giant has been looking to expand its offerings, report said.

On Wednesday, it unveiled new models of its Nexus phone and tablet devices, as well as a new version of its Android operating system. (ANI)