Google's rise in profits bolstered by ads

Google has reported an increase in revenue to $3.59bn on the same period last year, with money from advertising continuing to grow.

The US tech giant’s financial results for the first quarter showed total revenue of $ 17.3bn, a 12 per cent rise on the same period last year, and a 4 per cent increase in profits to $3.59.

The money coming from advertising was up to over $15bn, an 11 per cent increase on the same period in 2014, although figures did fall slightly below analysts’ predictions.

There had been fears that profits would go down due to investment in new business and weaker advertising revenue as more people use Google on their phones, where advertising rates are lower.

But Partick Pichette, chief financial officer, said the company continued to see great momentum in mobile advertising business and opportunities with brand advertisers.

The news comes after Google announced that it was changing how search results will appear on mobile devices in Europe, with preference being given to those sites the firm decides are mobile-friendly.

However, Google, like other US companies, did take a hit from the strong dollar, and currency exchange rates had an impact on its financials. The firm says that if foreign exchange rates had stayed the same over the last year, revenues in this quarter would have been $795bn higher.

The figures also showed Google continuing on the trend of hiring new staff, with numbers up 9,000 on this time last year.

Earlier this week, the company announced its latest venture in the shape of Project Fi, a mobile network that is beginning trials in the US, as E&T reported.

The new network will combine mobile signal from carriers with Wi-Fi, automatically and intelligently jumping between them depending on which is the strongest. Google says the aim is to ensure users are always able to communicate with one another.

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