Google posts strong Q2 despite slowing growth

Google has recorded a strong second quarter, with profit growing 18% to $1.48 billion despite declines in revenue growth.

Total sales grew 3% to $5.52 billion, compared to 6.2% growth in the first quarter, Google said.

But Google CEO Eric Schmidt said Google was pleased with the results, “especially given the continued macro-economic downturn. While most of the world's largest economies shrank, Google's year-over-year revenues were up 3%,” he said.

The result showed the company’s “efforts to manage expenses in a way that puts us in a good position for the economic upturn,” he added.

Google's $5.36 earnings per share beat analysts' estimates of $5.08 per share, the BBC reported.

Paid click revenue grew 15% year on year, but fell 2% from Q1. At the same time, cost-per-click fell 13% year-on-year.

International revenue accounted for 53% of Google's total, up one point both year-on-year and sequentially. Google-owned sites generated 66% of Google's earnings, a 3% growth from Q4 2008.

Google shaved $20 million from its traffic acquisition costs, which fell to $1.45 billion, while its other costs of revenues decreased to $655 million from $674 million in Q2 2008.

Google stock on Nasdaq fell 3.3% in after hours trading to $427.98.

 

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