Google has seen a large increase in profits in the three months to September, with revenue increasing as well. Net income in the third quarter rose 26% to £1.74 billion, or $2.73 billion. The same time frame last year saw profits of $2.17 billion.
Google launched Google+ this year, designed to rival Facebook as a social networking site. The head of Google, Larry Page, said, “People are flocking into Google+ at an incredible rate. We had a great quarter. Google+ is now open to everyone and we just passed the 40 million user mark.”
Facebook has 800 million users and has been in existence since April of 2004. With many changes to the site however, people have begun getting disillusioned and interested in using Google+ instead.
Profits had been ahead of anticipations and shares rose 6% after markets closed. UBS analyst Brian Pitz said that the expenses were not as large as Wall Street expected, with this being the fourth month in a row the company increased revenue at the top.
Revenue increased by 33% to $9.72 billion, meaning the company is just under having a turnover each quarter of $10 million. Mr. Page co-founded the company and replaced Eric Schmidt as the CEO last April.
Google earns money through its advertising in the search engine. In addition, the company has created the popular Android mobile phone system, and has begun to develop Google Chromebooks, laptops built, using their Internet operator Google Chrome, which are designed for use of the Internet. Chromebooks are marketed as “nothing but the web”, as they only have the Internet, and have a similar idea to that of the netbook. The company, known for its search engine, has more web-based technology than most people realize.
Technology companies have been doing very well despite the economic crisis. With the issues of the US government deficit debate over the summer, it was revealed that Apple had more money than the US government as a whole. This is not surprising with the release several times a year of high end products that are extremely costly. Google is beginning to jump on this bandwagon, especially with the use of its Android mobile phones and its Chromebook.