Search engine giant Google has announced strong profits for the first quarter of 2009. Net profit is up 9% at $1.42 billion compared to just $1.31 billion a year before. Income is also 6% higher than the previous year now at $5.51 billion but is lower 3% compared to last quarter’s take.
Again, Google’s numbers defied analysts’ profit predication. Outlook had not been optimistic as the US market still stuck in the economic downturn. Analysts saw the recession and the slowdown of advertising spending as factors that could affect the company’s profits.
Google CEO Eric Schmidt, “Google had a good quarter given the depth of the recession. These results underline both the resilience of our business model and the ongoing potential of the web as users and advertisers shift online.”
However, Schmidt did not dismiss the effects of the economic downturn. The uncertainty of the recovery is a factor in the company’s performance. Advertisers – a main source of revenue for Google – have been lowering their bids.
Source: BBC
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Tags: Corporate, Google, Internet, Technology