Google Profit Jumps 11% to $2.8 Billion

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By David Goldman

NEW YORK (CNNMoney) — Online advertisers keep paying Google less for its ads, but so far, Google has proven it can out-sell the problem.

The world’s online search leader said its net income in the second quarter rose to $2.8 billion, up 11% from a year earlier.

The results included $560 million in one-time charges related primarily to the company’s purchase of Motorola Mobility, which was completed in May. Without the charges, Google said it earned $10.12 per share. Analysts polled by Thomson Reuters, who typically exclude one-time items from their estimates, had forecast earnings of $10.04 per share.

Google’s profit rose more than expected as the number of clicks on the company’s ads increased, but the amount that advertising partners pay per click continued to drop dramatically, falling 16% compared to last year.

That’s a problem that has plagued Google for several quarters.

Google’s costs also continued to soar as the company ramped up its hiring and spending spree — particularly after its Motorola purchase. The search giant’s headcount exploded to nearly 55,000, up 65% from the previous quarter, thanks to the more than 20,000 Motorola employees it added.

Google upped its non-Motorola headcount by 4%, and the company spent a whopping $774 million to support its massive data centers. The company said it expects to continue to make “significant” capital expenditures going forward.

Sales for the Mountain View, Calif.-based company rose 35% to $12.2 billion.

In their forecasts, Wall Street analysts excluded Motorola’s revenue as well as the advertising sales that Google shares with partners, a figure also known as traffic acquisition costs. Without those sales, the company reported revenue of $8.4 billion, which were roughly in-line with analysts’ forecasts.

Shares of Google rose 2% after hours.

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