Google profit soars, but key metric declines
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Google's profit soared 61 percent in the first quarter, but the average "cost per click" paid to Google by advertisers declined for the second quarter running, the company reported Thursday.
Google's profit for the quarter, which ended March 31, was US$2.89 billion, up from $1.80 billion in the first quarter of 2011. Revenue was $10.65 billion, up 24 percent from the same quarter last year, Google said.
Average cost per click, or the amount advertisers pay Google when users click on their ads, fell by 12 percent year over year. Last quarter the figure declined by 8 percent.
Google has noted that the total number of paid clicks on its ads continues to rise, however. In the first quarter it increased by 39 percent from a year earlier.
Google also announced a novel type of stock split that will increase the volume of its shares on the market without reducing the voting power of its senior managers.
The company will create a new, "non-voting" class of stock to be listed on the Nasdaq stock market. The move amounts to a two-for-one stock split, but the additional shares that will be granted to each shareholder will not increase their voting power.
In a letter to shareholders, Google acknowledged the move might not be popular with everyone.
"But after careful consideration with our board of directors, we have decided that maintaining this founder-led approach is in the best interests of Google, our shareholders and our users," it said.