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Page talks up Google+ in wake of record quarter

Google has reported a 32-percent jump in second-quarter revenue, spurred by increases in AdSense and Google Sites income, as chief executive Larry Page trumpets the launch of Google+
Written by Ben Woods, Contributor on

Google made more money in the last three months than in any of its previous quarters, company boss Larry Page revealed on Thursday as he enthused about the launch of the company's social-networking platform Google+.

According to the company's quarterly financial statement — issued on Thursday — its second-quarter revenue increased by 32 percent year-on-year, reaching just over $9bn (£5.6bn).

"We've substantially increased our velocity and execution this quarter, which is a key goal of mine since taking over as chief executive. So I created a new product focus management structure, with clear leaders responsible for each area," Page said during an investor earnings call.

"The new management team is working together fabulously and has already achieved a lot in just these three months," he added.

The company attributed the revenue increase to a 39-percent rise in takings from Google Sites — amounting to $6.23bn — and a 20-percent lift in partner-generated AdSense income.

Page also talked-up the launch of Google+, revealing that more than one billion items are being shared on the social network every day.

"Over 10 million people have joined Google+. That's a great achievement for the team. There's also a ton of activity, and we are seeing over one billion items shared and received in a single day," Page said. "Our +1 button is already all over the web, and it's being served 2.3 billion times a day."

Our emerging high-usage products can generate huge new businesses for Google in the long run, just like search.
– Larry Page, Google

Page revealed that 550,000 Android devices are activated each day and that more than 39 hardware makers are producing 400 models running the Google-backed mobile OS. He also noted that its Chrome browser now has more than 160 million people using it. Asked about how the company intended to start making money from the open-source software, he argued the products would eventually pay off.

"Our emerging high-usage products can generate huge new businesses for Google in the long run, just like search, and we have tons of experience monetising successful products over time," he said.

During the second quarter, Google shut down its PowerMeter energy-management service and its Google Health record aggregator. Page said this reflected "greater focus" within the business.

UK revenue

Revenue from the UK added up to $976m. That represents 11 percent of total global income, the same proportion as a year ago.

"While the UK still continues to lag slightly in the global recovery, year-over-year and quarter-over-quarter growth in Q2 continues to show signs of acceleration in the UK as well," Patrick Pichette, chief financial officer at Google, said during the investor call.

Despite the strong, above-expectation performance during the quarter, business costs also increased significantly during the three months to 30 June.

Operating expenses totalled $2.97bn, up nearly $1bn in comparison to the same quarter in 2010. Other associated costs — such as operational datacentre expenses, credit-card processing charges, amortisation of intangible assets and content acquisition costs — added just over another $1bn. Its quarterly profit was $2.51bn, up around 36 percent from $1.84bn in the same quarter the previous year.


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