Google Quarterly Profits Jump by 61% to $2.9 Billion

Google has reported a 61% rise in its first quarter profits of US$2.89 billion, on a 24% rise in revenues to US$10.65 billion. The rise in revenues was despite a 12% decline in the cost per click of adverts placed on its websites, and those of advertising partners (which includes this website).
“Google had another great quarter with revenues up 24% year on year,” said Larry Page, CEO of Google. “We also saw tremendous momentum from the big bets we’ve made in products like Android, Chrome and YouTube. We are still at the very early stages of what technology can do to improve people’s lives and we have enormous opportunities ahead. It is a very exciting time to be at Google ltd.”
The company also announced a stock-split that would create a new class of non-voting capital stock that would be separately listed on the Nasdaq stock exchange. The move is effectively a two-for-one split which the company says investors have been asking for this.
The non-voting shares can be used for corporate purposes, such as employee stock options in a manner that avoids diluting the voting rights of the shareholders. However, it also preserves the 60% voting rights of the two co-founders, Page and Brin.
As of March 31, 2012, the company had $49.3 billion available to it in cash, cash equivalents, and short-term marketable securities. The company ended the quarter with just over 33,000 full-time employees.
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