Google reported last Tuesday that they made a net profit of $2.79 billion or $10.12 per share in the second quarter. The figure is higher than the $2.51 billion it reached in the same period in 2011.
“The demand for searches in the U.S. was very strong, despite the economic challenges in Europe. I have the feeling that the demand for searches was not very bad there.” said Kerry Rice, an analyst at Needham & Co.
In its first financial report since acquiring Motorola Mobility, the search giant had revenues of $12.21 billion, meaning a rise of 35% was received over the same period last year. Google said that this was despite Motorola’s operating losses of $233 million in the period or 19% of their income.
The cost per click of Google’s online ads continued to decline in the second quarter by 16% of their annual contract, although the number of clicks on the ads increased 42%.
“The cost per click fell more than I expected, but this could be a downward curve. Since then, we have seen an increase,” Rice said. “We could have passed the bottom,” he added.
Google, the largest Internet search engine in the world, closed the Motorola deal for $12.5 million last May. The acquisition gained them access to the competitive smart phone market which is currently dominated by companies like Apple Inc and Samsung.
The company said revenues from its internet business totaled $10.96 billion, while Motorola sales came to $1.25 million in the quarter.
