Google profits down in latest results

Also looking to bid on 700MHz wireless spectrum auction in the US

20 July 2007 21:17 GMT / By Stuart Miles

Google showed a kink in its armour today by unveiling profits that weren’t as good as expected, but if you are now suddenly worried about your investment, don’t be, it still managed to make $3.87bn in Q2 in revenue.

However profits increased by just 28%, to $925m (£450m), mainly due to heavy spending. And acquisitions:

"We remain focused on addressing the tremendous opportunities we see worldwide, adding the talent and building the infrastructure that will allow us to continue to provide rich user experiences to Google users around the world", said CEO Eric Schmidt.

Google's UK revenues were $600m (£292m), 15% of total turnover in the quarter, compared to 15% in Q2 2006 and 16% in Q1 2007.

In related Google news, the company has said that it would be prepared to bid for the US federal government’s upcoming auction of wireless spectrum in the 700 megahertz (MHz) band.

If Google’s proposed conditions are met by the FCC, then Google will reserve a minimum of $4.6 billion for the auction.

The spectrum, currently used for televisions signals in the US is expected to become used for a superfast wireless broadband network.