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Google’s Q4 earnings: $14.42 billion revenue, 36% growth

Proving many analysts wrong Google has posted its
consolidated revenue which includes its Motorola Mobility mobile phone business
to be $14.42 billion, registering 36 percent year-on-year growth. Excluding
traffic-acquisition costs, the business generated net revenue of $9.83 billion,
up from $8.13 billion a year earlier.

According to analysts the search giant introduced new
product listings during the fourth quarter and also benefited from business growth
in international markets reported Reuters.

Proving many analysts wrong Google has posted its
consolidated revenue which includes its Motorola Mobility mobile phone business
to be $14.42 billion, registering 36 percent year-on-year growth. Excluding
traffic-acquisition costs, the business generated net revenue of $9.83 billion,
up from $8.13 billion a year earlier.

According to analysts the search giant introduced new
product listings during the fourth quarter and also benefited from business growth
in international markets reported Reuters.

“Business looked really strong, especially from a
profitability perspective. They really grew their margins in the core business.
Most of that strength seems to be coming from international markets which grew
revenues quite substantially: up 23 percent year over year, versus the 15
percent growth in the third quarter,” said Sameet Sinha, an analyst with
B. Riley Caris.

Meanwhile, the average cost-per-click, a critical metric
that denotes the price advertisers pay Google, declined 6 percent from a year
ago, the fifth consecutive quarter of decline.

Google executives told analysts that the company had focused
on improving the metric – shoring up margins – while lowering the overall
growth rate of paid clicks in the holiday quarter.

Meanwhile, Motorola
Mobility mobile phone business acquired by Google last year is still
losing money. Its consolidated net income in the fourth quarter was $2.89
billion or $8.62 per share, compared with $2.71 billion, or $8.22 per share, in
the year-ago period when Google had not yet acquired Motorola. The mobile business
had an operating loss of $353 million during the quarter.

Excluding certain items, Google said it earned $10.65 per
share in the fourth quarter.

“The core business is a great business and the
fourth-quarter is always a time for Google to shine. However, Motorola is still
losing money and click rates still declined. They only declined 6 percent, but
go back four or five quarters and click prices were improving. So mobile is
still pressuring click prices,” said BGC Partners analyst Colin Gillis.

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