Google reports upturn in revenues

Google has beaten many analysts expectations by posting a 9% rise in net profits for the first quarter of the year.

Google has beaten many analysts’ expectations by posting a 9% rise in net profits for the first quarter of the year.

The search engine giant says that net income for the three months to March 31 was $1.42bn (£958.1 million), up from $1.31bn (£884 million) in the same period last year.

The gain in income was driven by a 6% bump in revenues, up to $5.51bn (£3.72 bn) from $5.2bn (£1.68 bn) a year earlier.

However, the company did register its first ever quarter on quarter drop in revenues, down 3% on the fourth quarter.

Eric Schmidt, chief executive of Google, says the company had a “good” quarter despite the “depth of the recession”, adding that it is not immune from the impact of the global downturn. 

“These results underline both the resilience of our business model and the ongoing potential of the web as users and advertisers shift online,” he adds.

The core Google site accounted for the majority of generated revenues, $3.7bn (£2.49 bn) or 67% of total revenues while partner sites, through the search giant’s Adsense program, generated $1.64bn (£1.1bn), down 3% on last year.

UK revenues totalled $733 million (£494 million), representing 13% of revenues, down from the 15% it accounted for in the first quarter of 2008.

Despite the strong showing in the first quarter, Google has been feeling the effects of the global recession and the downturn in advertising spending.

It recently axed 200 sales and marketing jobs to improve efficiencies and avoid duplication, a move that followed the 100 jobs relating to its recruitment process it cut in January.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here