× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Google fourth-quarter revenue misses Wall Street target

NEWS
By Reuters | January 30th 2015

San Francisco, USA: Google Inc's (GOOGL.O) (GOOG.O) revenue grew 15 percent in the fourth quarter but fell short of Wall Street's target on declining online ad prices and unfavorable foreign exchange rates.

Shares of Google edged up 0.1 percent to $510.66 in extended trading after an initial dip on the news.

Google's advertising revenue has come under pressure as more consumers access its online services on mobile devices such as smartphones and tablets, where ad rates are typically lower.

The growing popularity of mobile devices has made No. 1 social network Facebook Inc (FB.O) a greater threat in the battle for advertisers. Facebook reported on Wednesday that mobile ads on its network doubled year-over-year during the fourth quarter.

Google said on Thursday the average price of its online ads, or "cost per click," decreased 3 percent year-over-year in the fourth quarter, while the number of consumer clicks on its ads increased 14 percent.

Some analysts had hoped for gains in cost-per-click, said BGC Partners analyst Colin Gillis, adding that the company, which gets about half of its revenue overseas, also was hurt by the strong dollar.

"Business is slowing. The core is slowing. And what we're saying is, it's going to look on paper even worse as the dollar strengthens. And we are not at that point where mobile monetization is improving," he said. "The thesis that the landscape is changing and Google is missing out - I don't think it will hold to be true, but they haven't squelched it."

Consolidated revenue in the three months ended Dec. 31 totaled $18.10 billion, compared to $15.71 billion in the year-ago period. Analysts polled by Thomson Reuters I/B/E/S were looking for revenue of $18.46 billon.

Chief Financial Officer Patrick Pichette said in a statement that revenue grew "despite strong currency headwinds."

Net income rose to $4.76 billion, or $6.91 per share, from $3.38 billion, or $4.95 per share, a year earlier. Adjusted earnings per share of $6.88 missed analysts' expectations of $7.11.

Share this story
State blocks 10 firms from fitting vehicles with speed governors
The government has barred about ten companies from fitting speed limiters and recorders on the public service vehicles, citing poor performance on the gadgets already in the market.
Property developers ride on holiday homes wave
Short-term rents such as Airbnb have become popular with buyers who don’t reside in the houses throughout the year.
.
RECOMMENDED NEWS
Feedback