Google profits double to $3bn

thursday 1 february, 2007

The world's favourite search engine, Google, saw its profits rocket by 110% to $3.07bn (£1.57bn) last year as the California company extended its dominance in guiding people around cyberspace.

Google last night announced that its revenue jumped from $6.1bn to $10.6bn during 2006 - and almost a third of its income went straight to its profits.

The number of "paid clicks", where visitors hit adverts, jumped 61% in the fourth quarter against the same period in 2005.

But its shares fell 2.9% in after-hours trading to $486, as it met - but did not exceed - forecasts. Analysts said the hype around Google had pushed expectations to a level almost impossible to satisfy.

On a conference call, Google's chief executive, Eric Schmidt, said business continued to be "very, very good".

"It turns out that we're growing strongly, according to third-party data, in almost every country," he said.

Christmas shoppers helped Google to a strong end of year in America. But the company said its British arm contributed a slightly lower proportion of global income, at 15% in the final three months of 2006 against 16% in the same period in 2005. Chief financial officer George Reyes said Britain exhibited "softer travel and finance" trends, although he described it as merely a "seasonal pattern".

The figures capped a phenomenal year for Google. It floated in 2004 with shares at $85 - but in November, they hit $500 making the firm more valuable than IBM .

Source: The Guardian