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Google profits jump

Apr 17, 2012
Google has reported a jump in profits and sales for the first quarter, proving the sun still shines on Mountain View.

The search giant reported net income in the first quarter shot up 60 per cent from the same period last year - rising to $2.89bn (£1.8bn). Quarterly revenues exceeded $10bn (£6.2).

"Google had another great quarter with revenues up 24 per cent year on year," Google CEO Larry Page said. 

"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.

"We are still at the very early stages of what technology can do to improve people's lives and we have enormous opportunities ahead."

Google, in its 2012 Founders' Letter, also announced it will create a new class of non-voting capital stock, which will be distributed to all existing shareholders by means of a stock dividend. The owner of each existing share will also receive one new share of non-voting stock. 

The move, according to the company's founders, will preserve Google's corporate structure and allow the company to remain focused in the long term.

"We have decided that maintaining this founder-led approach is in the best interests of Google, our shareholders and our users," Larry Page and Sergey Brin said.

"Having the flexibility to use stock without diluting our structure will help ensure we are set up for success for decades to come."


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