Google reports rise in Advertising Revenues
Search and technology major Google reported its first quarter revenue. According to the earnings report released by search giant, profit for the first quarter of 2015 edged higher from last year despite strong US dollar which impacted overseas revenue. The company has reported a healthy rise in its advertising revenues.
The Mountain View, California-headquartered company reported that in the first quarter, net profit rose about 4% from a year earlier to about $3.59 billion. The revenue surged by 12% to $17.3 billion. Google stated that the revenue was led by gains from the company’s online advertising.
Like other big companies across the globe, Google saw its results hit by the strong dollar. Earlier, Patrick Pichette, chief financial officer of Google, said that the company’s revenue grew about 17% from last year on a constant-currency basis.
In the earnings statement, he said, “We continue to see great momentum in our mobile advertising business and opportunities with brand advertisers”. According to the reports, the company’s advertising helped it to make bulk of the revenues. Receipts from the company’s own websites and its partners rose over 10% from last year.
The results reported by the search giant were shot of Wall Street forecasts. In addition, the company underscored competition with social network company Facebook, which earlier this week reported a jump of more than 45% in its ad revenues.
Shares of Google traded higher by 2% in after-hours trading to $558.06. The earnings report comes with the company facing formal charges from the European Union. EU alleges that Google abused its dominance in search to promote its own services. It is also examining search giant’s dominance of the global mobile phone system with its Android platform.
Mobile phones are the biggest source of the company’s recent growth. It has been helping the company's advertising clicks which increased about 13% from last year.