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Google financial insight

Alex Christie

28 July 2009

Well the second quarter results for Search engines have now being made public.

Google’s results were positive and ahead of analysts expectations.  Revenue of $5.5bn was an increase of 3 per cent quarter-on-quarter from 2008.  A slightly different picture from the Q2 results published by Yahoo, where net revenues had fallen by 16 per cent.

Even though Google is still seeing growth through a recession, the pace has significantly changed over the past eighteen months, suggesting that even the mighty power of the dominant search engine isn’t entirely recession-proof.  However, Google is being managed prudently through the storm, with cash reserves of $12bn and managing it’s costs well.

The question is, how the third quarter will fare for the Search industry given the increased competition for paid search terms?



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