Google Profits Leap Lifts Shares

By Evening Standard, London

Apr. 18–The plunging greenback has helped online search giant Google push up first quarter net profit by 30 percent, bringing new life to its share price.

For the first time most of its profits came from outside the US. Google stock slid 35 percent this year with fears that the economic slowdown in the US will take its toll on advertising revenue.

While the domestic ad take is down, international expansion and a lower dollar have taken up the slack.

Net profit was $1.31 billion (UKpound 658.5 million) on revenue of $3.70 billion, well ahead of consensus forecasts of $3.59 billion. Even without the forex effect, Google would have beaten forecasts. It says favourable exchange rates pushed revenue $202 million higher.

In terms of market share, Google is still well ahead of rivals. It captured 63 percent of internet queries worldwide in February, up from 62 percent in December, and accounted for 60 percent of US searches in March.

Google’s cash pile was boosted by $1.78 billion last quarter to $12.1 billion.

The shares rose 18 percent in after-hours trading.

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