Google posts strong Q1 results

Google has reported strong Q1 earnings – up 60% year on year to $2.89 billion (£1.81 billion), with gross revenues also up by 24% to $10.65 billion.

The search giant has announced a two-for-one stock split that will effectively act as a one-off dividend for existing shareholders, while retaining the co-founders’ control of voting stock.

Google’s revenues were $8.14 billion after a $2.5 billion payment for traffic acquisition costs. Cost-per-click – the average amount that Google charges advertisers when users click on an ad – dropped by 6%, down 12% year on year.

Almost all of Google’s revenues came from advertising (just over 96%). The US dominates 46% of revenues; while the UK generates 11% ($1.15 billion).

Following the results, Larry Page, Google’s chief executive, dodged questions on whether Google plans to release its own tablet to compete with Apple’s iPad. He also avoided giving exact numbers on how many people are using the site’s social network Google+ but it is thought that 170 million people have registered.

Read the full Guardian article here.