Google reports 18% rise in profits

Search giant Google saw net profits rise 18% to $1.48 billion (£901 million) in the three months to the end of June.

Revenues were up 3% year on year to $5.52 billion (£3.36 billion) with Google saying the increases were due to “responsible efforts to manage expenses”.

Chief executive Eric Schmidt said: “Google had a very good quarter, especially given the continued macro-economic downturn. We remain focused on investing in technical innovation to drive growth.”

Revenues from the UK were down 8% year-on-year, in part due to the collapse of the pound over the past year, said chief financial officer Patrick Pichette.

Foreign exchange fluctuations cost the company approximately $500 million in lost profits, although the loss “was partially offset by revenues from our hedging programme,” Google said.