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Google profits leap lifts shares
18.04.08
The plunging greenback has helped online search giant Google push up first quarter net profit by 30%, bringing new life to its share price.
For the first time most of its profits came from outside the US. Google stock slid 35% 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 (£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% of internet queries worldwide in February, up from 62%in December, and accounted for 60% 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% in after-hours trading.
