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Google shares skyrocket on back of massive revenue jump

Shares jump by almost 10% after the company announces a 32% increase in profits for the third quarter.

All seems rosy in Google's garden, as the company exceeded profit expectations on the back of growing mobile and display advertising markets.
All seems rosy in Google's garden, as the company exceeded profit expectations on the back of growing mobile and display advertising markets.
Image: Paul Sakuma/AP

SHARES IN GOOGLE have taken a massive jump in morning trading in New York today after the company announced impressive results for the third quarter, registering a 32% increase in profits that confounding market expectations.

The company saw revenues jump to $7.3bn (€5.18bn), an increase of 23% – a surge that saw its net income reach $2.2bn (€1.56bn) for the three months from July to September.

Announcing the results, Google attributed the impressive increase in its profitability to the growth of its new businesses, including the burgeoning mobile advertising sector.

The mobile advertising business in particular, it said, was set to grow to the point where it would bring in $1bn a year. Display advertising, meanwhile – the ads that appear, for example, on YouTube – would grow to become a $2.5bn-a-year sector.

“We saw strength in every major product area,” Google CFO Patrick Pichette told analysts.

The company’s net revenues had been expected to drop after the company had announced a new round of hiring across its worldwide offices – feeling which had led shares in the search giant to stall earlier in the year.

The payoff from the display ad sector has also shown that its 2008 purchase of DoubleClick – once upon a time the internet’s leading pop-up and banner advert provider - in a deal with $3.2bn (€2.27bn) is beginning to bear fruit.

The greatest tally of Google’s income still comes from the text-based advertisements that appear on a Google search page, however. The average amount of money made by Google every time a user clicked on one of those ads increased by 3%, while the introduction of Google Instant had increased the number of searches being performed.

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Gavan Reilly

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