Google suffers 5% third quarter profit decline
Tech titan Google has recorded an uncharacteristic slide in profits over the third quarter to a still substantial $2.8bn, a 5 per cent decrease versus the same period a year earlier.
Revenues for the same period came in 20 per cent higher at $16.52bn although this was also below analysts expectations.
The disappointing results were driven by a 2 per cent decline in the average cost-per-click that it can command together with rising costs of real estate such as data centres which swelled 37 per cent to $3.35bn.
Google chief financial officer Patrick Pichette remained optimistic for the future however, saying: “We continue to be excited about the growth in our advertising and emerging businesses.”
The news comes just one day after the launch of a new Nexus phone and tablet, designed to wean the company off its dependence search advertising.