Google posts $2bn Q1 profit thanks to big brand spending

LONDON - Google recorded a $1.96bn (£1.3bn) profit in the first quarter of 2010, a 38% increase on the same period last year and a performance the search giant attributes to the return of large advertisers and an improving economy.

Google: big brands boosted profits
Google: big brands boosted profits

Revenues at Google also increased markedly. In the three months ending 31 March 2010 Google generated $6.77bn (£4.39bn), up 23% on the same period last year.

In the UK, which continues to account for 13% of Google's business, revenues reached $842m (£546.5m), an increase of 15 per cent on the first three months of 2009.

Google attributed the growth to an increase in consumers clicking on branded search adverts - clicks on Google ads increased 15% in Q1 2010, compared to Q1 2009. Google's chief financial officer Patrick Pichette said a return of large advertisers and an improvement in the economy helped Google grow revenue and profit.

Google's positive results have beaten many analyst forecasts although the search giant's share price has dipped since the announcement.

After scaling back on staffing last year, Google increased its workforce from 19,835 full-time employees in Q4 2009 to 20,621 in Q1 2010 - an investment that some analysts are uncomfortable with.

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