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Google Q2 operating profit drops
2013-07-19 08:42:00| Telecompaper Headlines
(Telecompaper) Google reported second-quarter revenues up 19 percent year-on-year to USD 14.11 billion. That includes USD 3.01 billion in traffic acquisition costs, equal to 25 percent of its ad revenues. Paid clicks were up 22 percent from a year ago, but the cost per click declined 6 percent. Google's operating profit fell to USD 3.12 billion from USD 3.24 billion a year earlier, hurt by losses at the Motorola business. Net profit rose to USD 3.23 billion or USD 9.54 per share, from USD 2.79 billion or USD 8.42 per share in the second quarter of 2012, including a gain of USD 747 million on the sale of the Motorola Home business. Google provided a breakdown of results with Motorola. Its own revenues made up 93 percent of the total and increased 19 percent year-on-year, while the Motorola Mobile business, which includes other hardware as well, grew sales to USD 998 million from USD 843 million a year ago. Motorola had an operating loss of USD 342 million in the quarter, compared to a loss of USD 199 million a year earlier, while Google's own operating profit increased slightly to USD 3.47 billion. The figures also show a sharp reduction in Motorola Mobile's workforce, to 4,600 at the end of June versus almost 10,000 in March. After capital expenditure of USD 1.6 billion, Google reported free cash flow of USD 3.09 billion for the quarter. It finished the period with total cash of USD 54.4 billion.
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Category:Telecommunications