Google reports strong profits

Google the world’s largest Internet-search company, reported first-quarterprofit that topped analysts’ estimates after demand for its newer services helped fuel growth.

Profit before certain costs was $10.08 a share, the Mountain View, California-based company said on its website. Analysts had projected $9.64 on average, according to data compiled by Bloomberg. Excluding revenue passed on to partner sites, sales rose to $8.14 billion, matching estimates. The company also proposed an effective stock split.

Chief executive officer Larry Page, who took charge a year ago, has pushed Google deeper into display advertising and mobile services. This year the company will account for 16.5% of the US market for display ads, which include banners and videos, according to EMarketer Inc. By next year, Google is projected to grab almost 20%, unseating Facebook Inc. as the market leader. “The viability of Google is still very, very strong,” said Ron Josey, an analyst at ThinkEquity LLC in New York.

Google’s shares were little changed in late trading. They had risen 2.4% to $651.01 at the close in New York. The company announced plans for what it calls an effective stock split, introducing a new class of non-voting capital stock. The shares will be distributed through a stock dividend to existing shareholders.

Bloomberg

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