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Google Inc, owner of the world's most popular internet search engine, reported profit that topped analysts' estimates as advertisers increased spending on mobile and video promotions.
First-quarter profit, excluding some items, was $11.58 a share, Google said yesterday in a statement. Analysts had projected $10.68 per share, according to data compiled by Bloomberg. Net income increased 16 per cent to $3.35 billion, or $9.94 a share.
Google is pushing beyond its roots as a desktop-based search business to enter new ad-driven markets, including smartphones, web services and video, stepping up competition with Apple Inc and Microsoft Corp. The company's search and video businesses bolstered results with Google-owned sites generating $8.64 billion in revenue for the quarter, up 18 per cent from a year earlier, according to Benjamin Schachter, an analyst at Macquarie Securities USA Inc.
"The core business is still doing well," Schachter said. "They're managing to maintain a lot of strength in that core business across geographies."
First-quarter revenue, excluding sales passed on to partner sites, rose to $11 billion, Google said. Analysts had projected sales of $11.2 billion, according to data compiled by Bloomberg.
Shares of Mountain View, California-based Google rose 1.4 per cent to $776.80 yesterday in extended trading.
Earlier, they declined 2.1 per cent to $765.91 at the New York close. The stock has advanced 8.3 per cent this year, compared with an 8.1 per cent gain for the Standard & Poor's 500 Index.
Tax credit
The company benefited in the first quarter from a federal credit that helped reduce its tax rate and boost earnings, Patrick Pichette, CFO, said yesterday on a conference call with analysts.
