Google makes a fortune

google-logo-art-image-hdGoogle’s profit has beaten forecasts for the first time in the last six quarters, thanks to strong advertising revenue.

According to the company its expenses rose 10 percent to $12.9 billion in the second quarter ended June 30 from the year-ago quarter, and remained at 73 percent of revenue.

But expenses only grew by $91 million from the first quarter, and as a percentage of revenue declined by 1 percentage point.

CFO Ruth Porat told analysts that the decline in quarter-over-quarter operating expenses reflects the outfit’s efforts to keep its expenses under control. We guess that means a lot of executives are having to pay for their own drinks.

Advertising revenue grew 11 percent to $16.02 billion from the year-ago quarter, while the number of ads, or paid clicks, rose 18 percent, the company said.

“Cost per click,” or the average price of online ads, fell 11 percent, but was more than offset by the increase in ad volumes.

This reverses the problem that punters have been accessing pages on mobile devices such as smartphones and tablets, whose ad rates are typically lower.

The company’s consolidated revenue rose 11 percent to $17.73 billion in the quarter.

Net income rose 17 percent to $3.93 billion, or $4.93 for each Class A and B share, from $3.35 billion, or $4.88 per share.