Google revenues up despite challenges

ONLINE search giant Google, has announced financial results for the first quarter of 2010, posting a 35 per cent rise in net profits in the three months to the end of March at $1.9bn (£1.2bn). Revenues rose 23 per cent year on year to $6.7bn (£4.4bn).

The positive results come despite a tough year that has seen Google face challenges over privacy, criticism from the media sector (Rupert Murdoch called them plagiarists!) increased scrutiny from European regulators and the rumbling dispute with China.

Google’s Chief Financial Officer, Patrick Pichette commented: "As we enter 2010 it is really clear the digital economy continues to grow rapidly and at Google our users and advertisers all continue to benefit from this profound and positive trend. Our first-quarter results are simply a reflection of these trends and this really fuels our optimism as we continue to invest in innovation for the long run."

One of the fastest-developing business areas is the mobile search where Google dominates in Europe, prompting Vodafone to call for scrutiny from regulators. Google describes mobile as the "third axis", with Gartner research expecting mobile marketing ad revenues to rise from $530m (£345m) in 2008 to $7.5bn (£4.9bn) over the next two years.

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