Google sees sales rise sharply due to increased advertising sales

Google saw its revenue increase by 22 percent in the past quarter. The company was able to sell more advertisements, but is struggling with a further decreasing cost-per-click. Turnover from other branches such as Nexus sales and cloud services also increased.

In the past quarter, Google made a turnover of almost 16 billion dollars, converted almost 12 billion euros. That was 22 percent higher than in the same period last year. However, profits rose by only 5.9 percent to $3.42 billion, or 2.52 billion euros. Google is experiencing a declining average cost-per-click, the value an average click represents; that value fell by 6 percent year-on-year for its own sites and 13 percent for network sites.

In addition, Google has high costs. For example, research & development costs rose by 26.7 percent to 2.23 billion dollars, or 1.65 billion euros. Google’s revenue is 90 percent dependent on advertising, but revenue from other branches, such as sales of Nexus devices, Google Apps and cloud services, also increased: by 53 percent.

At the same time as the quarterly results, Google announced changes in management. Chief business officer Nikesh Arora, who spent ten years at Google, is leaving the company to become CEO of SoftBank Internet and Media.