San Francisco: Google Inc., owner of the world’s most popular search engine, reported sales and profit that beat estimates as businesses spent more to reach online consumers through advertisements.
Third-quarter sales, excluding revenue passed on to partner sites, rose to $7.51 billion, Mountain View, California-based Google said on its website. That topped the $7.23 billion average of analysts’ estimates compiled by Bloomberg. Profit, excluding some items, was $9.72 a share, beating the $8.76 average estimate.
Google is benefiting as companies, concerned about economic weakness, use Web-search and display ads as a low-cost way to reach customers on computers and smartphones. “Search advertising should reach $37.7 billion this year globally, up 23%, while total Internet ad spending should climb 20%,” according to media researcher MagnaGlobal.
“The search business is relatively resistant to the slowing economy,” said Clay Moran, an analyst at Benchmark Co. “The search business will do relatively well and has done relatively well. The other reason is they are gaining share in display and mobile.”
Third-quarter net income climbed 26% to $2.73 billion, or $8.33 a share, from $2.17 billion, or $6.72, a year earlier