Google reports $1.03bn quarterly profit

Internet search engine Google said today quarterly profit nearly tripled on the back of lower tax rates and tighter expense controls…

Internet search engine Google said today quarterly profit nearly tripled on the back of lower tax rates and tighter expense controls.

Google's profit in the fourth quarter grew to $1.03 billion, or $3.29 per share, from $372.2 million, or $1.22 per share a year ago.

Excluding stock-based compensation and amortisation charges, as well as a tax credit, earnings came to $3.18 per share, beating the average analyst forecast of $2.91.

Full year earnings were $3 billion more than double the corresponding figure for 2005.

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Strong advertising for the holiday shopping season helped Google's revenue growth, as well as increased spending in Germany and France.

Shares in Google fell as much as 3.5 per cent in extended trading after the company reported results, though the declines were muted as executives said they would continue major investments in the business to bolster financial results.

Google's revenue grew 67 per cent in the fourth quarter to $3.21 billion, compared with average analysts' estimate of a 64 per cent year-on-year increase to $3.14 billion.