* Ad rate decline slows again
* Shares up 2 percent
By Alexei Oreskovic
April 18 Google Inc's core Internet
business grew net revenue 23 percent in the first quarter to a
better-than-expected $9.99 billion as the company's search
advertising business continued to show strength.
Shares of Google, which reached an all-time high of $844 in
March, were up 2 percent to $783.08 in after hours trading on
The company's average cost-per-click, a critical metric that
refers to the price advertisers pay the Internet search giant,
declined 4 percent from a year ago, the sixth consecutive
quarter of declines but an improvement over the fourth quarter's
6 percent slide.
"Google.com seemed to be doing fine," said Macquarie analyst
Ben Schachter. "Considering some of the scares around Europe,
it's not nearly as bad as it could've been."
Wall Street had worried that Google's growth will slow and
ad rates decline as advertising moves on to smartphones and
The company's main Internet business generated $9.99 billion
in first-quarter net revenue, which excludes fees paid to
partner websites, compared to $8.14 billion in the first quarter
Seven analysts polled by Reuters had yielded an average
forecast of $9.78 billion.
Overall first quarter net income, including its money-losing
Motorola Mobility mobile phone business, was $3.35 billion or
$9.94 per share. That compares with net income of $2.89 billion
or $8.75 per share in the year-ago period, before Google
Excluding certain items, Google earned $11.58 a share,
versus $10.08 a share a year earlier.
Consolidated revenue in the first quarter was $13.97
billion, versus $10.65 billion in the year-ago period.