Google’s expansion lifts bottom line
SAN FRANCISCO - Google Inc., owner of the world’s largest Internet search engine, reported sales and profit that topped analysts’ estimates, a sign the company is benefiting from an effort to expand into mobile and display advertising.
Second-quarter sales, excluding revenue passed on to partner sites, rose to $6.92 billion, Mountain View, Calif.-based Google said on its website. That topped analyst estimates of $6.57 billion. Net income climbed 36 percent to $2.51 billion, or $7.68 a share, from $1.84 billion, or $5.71, a year earlier.
Chief executive Larry Page, who succeeded Eric Schmidt in April, is using ads on mobile devices and the YouTube video site to lessen Google’s dependence on traditional Internet search. The company will command 41 percent of the US online advertising market this year, up from 39 percent in 2010, according to EMarketer Inc., a New York researcher.
Page is investing in new businesses to help Google compete with newer Internet rivals such as Facebook Inc., the world’s most popular social networking service.