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| Google shrugs off ad sales fear | Google shrugs off ad sales fear |
| (about 2 hours later) | |
| Google has reported market-beating results for the first three months of the year, easing worries of a slowdown in online advertising. | Google has reported market-beating results for the first three months of the year, easing worries of a slowdown in online advertising. |
| The owner of the most popular online search engine, said first-quarter profits rose to $1.31bn, up 30% from the same period a year ago. | The owner of the most popular online search engine, said first-quarter profits rose to $1.31bn, up 30% from the same period a year ago. |
| Google boss Eric Schmidt said "innovation in search, ads, and apps" helped to boost earnings growth. | Google boss Eric Schmidt said "innovation in search, ads, and apps" helped to boost earnings growth. |
| There have been fears that the firm was being hit by the slowing US economy. | There have been fears that the firm was being hit by the slowing US economy. |
| Google said sales were up 42% to $5.19bn for the quarter ended 31 March. | Google said sales were up 42% to $5.19bn for the quarter ended 31 March. |
| Google is rapidly becoming Britain's biggest advertising business Rory Cellan-Jones, BBC technology correspondent Read Rory's blog | Google is rapidly becoming Britain's biggest advertising business Rory Cellan-Jones, BBC technology correspondent Read Rory's blog |
| For the first time, the California-based firm earned more revenue abroad - 51% of total sales - compared to its home market. This was partly due to a slump in the weak dollar which increases the value of non-US earnings. | For the first time, the California-based firm earned more revenue abroad - 51% of total sales - compared to its home market. This was partly due to a slump in the weak dollar which increases the value of non-US earnings. |
| Its shares fell $5.50, or 1.2%, to $449.50 before its results were released, but they rebounded sharply after the closing bell which means that when New York trading begins on Friday, they will rise. | Its shares fell $5.50, or 1.2%, to $449.50 before its results were released, but they rebounded sharply after the closing bell which means that when New York trading begins on Friday, they will rise. |
| It's a good time to be a Google bull," said Colin Gillis, an analyst with Canaccord Adams. "The boys delivered." | It's a good time to be a Google bull," said Colin Gillis, an analyst with Canaccord Adams. "The boys delivered." |
| Bright future? | Bright future? |
| Shares in Google, the darling of the technology sector in 2007, saw its shares reach a peak of $741.80 in November last year, making it the fifth biggest US company by market capitalisation. | Shares in Google, the darling of the technology sector in 2007, saw its shares reach a peak of $741.80 in November last year, making it the fifth biggest US company by market capitalisation. |
| Google boss on how the company makes money | |
| But since then, its shares have been hammered on worries that it faced an advertising slump amid mounting evidence that the US is slipping into a recession. | But since then, its shares have been hammered on worries that it faced an advertising slump amid mounting evidence that the US is slipping into a recession. |
| The California-based company makes money when internet surfers click on the paid-for-links on the right hand side of the website which takes them through to the adverts. | The California-based company makes money when internet surfers click on the paid-for-links on the right hand side of the website which takes them through to the adverts. |
| Recent data from research firm comScore showed that fewer web searchers were viewing these, fanning fears that the company's best days were behind it. | Recent data from research firm comScore showed that fewer web searchers were viewing these, fanning fears that the company's best days were behind it. |
| Clicks on Google's sponsored links in the US slowed from a growth rate of 25% in the fourth quarter of 2007 to 1.8% in the first quarter of this year, according to comScore. | Clicks on Google's sponsored links in the US slowed from a growth rate of 25% in the fourth quarter of 2007 to 1.8% in the first quarter of this year, according to comScore. |
| But its upbeat results suggest the reason for this reflects a deliberate reduction in the number of ads on each search results page to deliver to advertisers better matched visitors who are more likely to buy their products. | But its upbeat results suggest the reason for this reflects a deliberate reduction in the number of ads on each search results page to deliver to advertisers better matched visitors who are more likely to buy their products. |
| US SEARCH MARKET SHARE Google: 59.8%Yahoo: 21.3%Microsoft: 9.4%AOL: 4.8% Source: comScore March figures | |
| Analysts say Google's strong performance could strengthen Microsoft's resolve to buy Yahoo even if it means raising its $44.6bn offer - a move that it has so far rejected. | Analysts say Google's strong performance could strengthen Microsoft's resolve to buy Yahoo even if it means raising its $44.6bn offer - a move that it has so far rejected. |
| Yahoo, keenly looking at ways to escape being bought by Microsoft, has even teamed up with rival Google in a two-week experiment which will see search-driven Google adverts alongside the search results of Yahoo's website. | Yahoo, keenly looking at ways to escape being bought by Microsoft, has even teamed up with rival Google in a two-week experiment which will see search-driven Google adverts alongside the search results of Yahoo's website. |