Google posts massive profits

$11 billion in the bank and counting

1 February 2007 11:27 GMT / By Stuart Miles

Google has today announced its financial results for the quarter and fiscal year ended December 31, 2006 reporting revenues of $3.21 billion for the quarter ended December 31, 2006, an increase of 67% compared to the fourth quarter of 2005 and an increase of 19% compared to the third quarter of 2006.

Google-owned sites generated revenues of $1.98 billion, or 62% of total revenues, in the fourth quarter of 2006.

This represents an 80% increase over fourth quarter 2005 revenues of $1.10 billion and a 22% increase over third quarter 2006 revenues of $1.63 billion.

Meanwhile its partner sites generated revenues, through AdSense programs, of $1.20 billion, or 37% of total revenues, in the fourth quarter of 2006.

This is a 50% increase over network revenues of $799 million generated in the fourth quarter of 2005 and a 16% increase over third quarter 2006 revenues of $1.04 billion.

International Revenues from outside of the United States contributed 44% of total revenues in the fourth quarter of 2006, compared to 44% in the third quarter of 2006 and 38% in the fourth quarter of 2005.

Had foreign exchange rates remained constant from the third quarter through the fourth quarter of 2006, the company says that the revenues in the fourth quarter of 2006 would have been $18 million lower.

Had foreign exchange rates remained constant from the fourth quarter of 2005 through the fourth quarter of 2006, Google says its revenues in the fourth quarter of 2006 would have been $81 million lower.

The figures mean that as of December 31, 2006 Google is holding around $11.2 billion in the bank.