Google sees record $1.6 bn profit

Google has reported its highest quarterly profit, suggesting that the
internet advertising market is bouncing back from the recession.
Google reported net profit of $1.64 bn (£1 bn) between July and
September, up 27 % on the same period a year ago. "The worst of the
recession is clearly behind us," said Google chief executive Eric
Schmidt. US computer giant IBM also reported strong profits of $3.2
bn for the period, up 14 % on a year earlier. The company also
delivered a more optimistic forecast for full year earnings.
Management said they too were seeing some stabilisation in the
overall economic environment. 'New advertising' Revenue at Google for
the three-month period came in at $4.38 bn, which was well ahead of
analysts' expectations of $4.24 bn. " Google has no competition.
Yahoo is withering on the vine and [Microsoft's] Bing is too tiny
now " Coin Gillis, Brigantine Advisors "Because of what we have
seen, we now have the confidence to be optimistic about our future, "
said Mr Schmidt. The company also announced two new initiatives,
including the sales of electronic books through a new electronic
editions service. This would be in direct competition with Amazon and
Apple. Google has also agreed a deal to broadcast programmes from the
UK's Channel 4 on its YouTube site. "People think of online video
when they think of YouTube, but now YouTube is trying to bring in
movies and longer-form content, which will let [ Google] bring in new
advertising that is going to be very profitable for them," said
respected technology blogger Robert Scoble. 'Spending money' The
internet search engine has weathered the recession better than other
advertising- dependent companies, and it was widely expected to be
one of the first beneficiaries of an economic recovery. "Google has
no competition. Yahoo is withering on the vine and [Microsoft's] Bing
is too tiny now," said Coin Gillis, senior analyst at Brigantine
Advisors. "They did great on every single metric. We think this is
sustainable." He said the message from the Google management was loud
and clear: "Big brand advertisers are back and they are spending
money." Google's shares rose $16.44 , or 3.1 %, to $ 546.35 in
extended trading on Thursday.