WorldWide Tech & Science. Francisco De Jesùs.
Motorola Mobility boosts Google`s revenues.
Google’s revenues soared 35 percent in Q2 as the firm added the recently-acquired Motorola Mobility to its balance sheet for the first time, even though the handset unit reported a significant loss.
The search engine giant’s revenue for the quarter ended 30 June jumped to US$12.21 billion, with Motorola accounting for US$1.25 billion (10 percent) of the total.
Motorola‘s results were included from 22 May, the date the acquisition closed, to the end of the reporting period – described as a “stub quarter” by Google. The unit reported an operating loss of US$192 million.
“We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions,” said CFO Patrick Pichette.
“We’re excited about the potential to build great devices for users,” said CEO Larry Page with regards to Motorola. He added that the recent launch of the Nexus 7 tablet had generated “rave reviews.”
Google reported Q2 net income of US$2.79 billion (US$8.42 per share), up from US$2.51 billion (US$7.68 per share) a year earlier.
The numbers were generally well received by the analyst community, with many noting that Google’s core online advertising businesses were proving resilient to the tough global economic conditions.
The number of paid clicks (for both Google and network members) grew 42 percent compared to a year ago, though the cost-per-click was down approximately 16 percent.
Traffic acquisition costs, the portion of revenues shared with Google’s partners, increased to US$2.60 billion in the second quarter of 2012, compared to US$2.11 billion a year ago. The TAC as a percentage of advertising revenue was 25 percent, up one percentage point.
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